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NEW QUESTION: 1
Tamara Ogle, CFA, and Isaac Segovia, CAIA, are portfolio managers for Luca's Investment Management (Luca's). Ogle and Segovia both manage large institutional investment portfolios for Luca's and are researching portfolio optimization strategies.
Ogle and Segovia begin by researching the merits of active versus passive portfolio management. Ogle advocates a passive approach, pointing out that on a risk-adjusted basis, most managers cannot beat a passive index strategy. Segovia points out that there will always be a need for active portfolio managers because as prices deviate from fair value, active managers will bring prices back into equilibrium. They determine that Treynor-Black models permit active management within the context of normally efficient markets.
Ogle decides to implement Treynor-Black models in her practice and starts the implementation process. In conversations with her largest client's risk manager, Jim King, FRM, she is asked about separation theorem in relation to active portfolio management. She responds that separation theorem more properly relates to asset prices deviating from and gravitating toward their theoretical fair price. King next asks Ogle about the differences between the Sharpe ratio and the information ratio and the difference between the security market line (SML) and the capital market line (CML).
After reallocating her client portfolios based on using the Treynor-Black model, Ogle discusses the results with Segovia. Ogle states that she is satisfied with the current methodology, but given her preference for passive management, she is still concerned about relying on analyst's forecasts. Segovia tells Ogle that he will research methods for modifying the Treynor-Black model to account for analyst forecasts.
Which of the following is most accurate regarding the separation theorem?
A. An investor's optimal portfolio is independent of the investor's risk aversion.
B. An investor's choice of risky assets does not depend on his degree of risk aversion.
C. The expected alpha of an actively managed portfolio should be maximized, regardless of the risk-free rate.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Active portfolio management (generally) and separation theorem (specifically) supports the conclusion that all investors should hold a combination of the risk-free asset and the market portfolio. This allows the portfolio manager to identify the optimal risky portfolio, independent to the investor's risk aversion. The optimal portfolio for an individual investor is a combination of the risk-free asset and the optimal risky asset portfolio that does depend on the investor's degree of risk aversion. (Study Session 18, LOS67.a)

NEW QUESTION: 2
A network administration team will not be able to support an MDM project within the requested timeline. Which of the following would be the BEST option for deploying the Mobile Device Management software?
A. Stand Alone Solution
B. Software as a Service Solution
C. Private cloud hosted externally
D. Multi-Instance on Premise Solution
Answer: B

NEW QUESTION: 3
While evaluating control costs, management discovers that the annual cost exceeds the annual loss expectancy (ALE) of the risk. This indicates the:
A. control is weak and should be removed.
B. control is ineffective and should be strengthened
C. risk is inefficiently controlled.
D. risk is efficiently controlled.
Answer: C

NEW QUESTION: 4
顧客は、2つの異なるドキュメントタイプのドキュメント番号で同じ番号範囲を共有することを望んでいます。
どうすればこれを達成できますか?
正解を選択してください。
A. 元帳への関連リンクを使用して、2つの評価領域と2つの会計原則を定義します。
B. 評価エリアと拡張元帳を定義して、新しい評価エリアにリンクします。
C. 2つの元帳の評価エリアと元帳グループを定義して、新しい評価エリアにリンクします。
D. 2つの評価方法を定義し、会計原則を新しい評価方法に割り当てます。
Answer: A


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