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NEW QUESTION: 1
Geneva Management (GenM) selects long-only and long-short portfolio managers to develop asset allocation recommendations for their institutional clients.
GenM Advisor Marcus Reinhart recently examined the holdings of one of GenM's long-only portfolios actively managed by Jamison Kiley. Reinhart compiled the holdings for two consecutive non-overlapping five year periods. The Morningstar Style Boxes for the two periods for Kiley's portfolio are provided in Exhibits 1 and 2.
Exhibit 1: Morningstar Style Box: Long-Only Manager for Five-Year Period 1.
Exhibit 2: Morningstar Style Box: Long-Only Manager for Five-Year Period 2
Reinhart contends that the holdings-based analysis might be flawed because Kiley's portfolio holdings are known only at the end of each quarter. Portfolio holdings at the end of the reporting period might misrepresent the portfolio's average composition. To compliment his holdings-based analysis, Reinhart also conducts a returns-based style analysis on Kiley's portfolio. Reinhart selects four benchmarks:
1. SCV: a small-cap value index.
2. SCG: a small-cap growth index.
3. LCV: a large-cap value index.
4. LCG: a large-cap growth index.
Using the benchmarks, Reinhart obtains the following regression results:
Period 1: Rp = 0.02 + H0.01(SCV) + 0.02(SCG) + 0.36(LCV) + 0.61(LCG)
Period 2: Rp = 0.02 + 0.01(SCV) + 0.02(SCG) + 0.60(LCV) + 0.38(LCG)
Kiley's long-only portfolio is benchmarked against the S&P 500 Index. The Index's current sector allocations are shown in Exhibit 3.
Exhibit 3: S&P 500 Index Sector Allocations
GenM strives to select managers whose correlation between forecast alphas and realized alphas has been fairly high, and to allocate funds across managers in order to achieve alpha and beta separation. GenM gives Reinhart a mandate to pursue a core-satellite strategy with a small number of satellites each focusing on a relatively few number of securities.
In response to the core-satellite mandate, Reinhart explains that a Completeness Fund approach offers two advantages:
Advantage 1: The Completeness Fund approach is designed to capture the stock selecting ability of the active manager, while matching the overall portfolio's risk to its benchmark.
Advantage 2: The Completeness Fund approach allows the Fund to fully capture the value added from active managers by eliminating misfit risk.
Reinhart is more likely to satisfy the GenM alpha and beta separation objective by:
A. allocating funds solely to his market-neutral long-short managers.
B. allocating funds to his long-only active managers and to his passive market index fund manager.
C. allocating funds to his market-neutral long-short managers and to his passive market index fund manager.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In an alpha and beta separation approach, the investor gains systematic risk exposure by allocating funds to (low-cost) passive index managers, while separately adding alpha via allocation of funds to market- neutral long-short managers. (Study Session 11, LOS 33-t)
NEW QUESTION: 2
SIMULATION
Dextrose 25% 1000ml is ordered. You have only dextrose 70% solution available. How much of the dextrose 70% solution and sterile water will you use to fill this order?
Answer:
Explanation:
357 ml dextrose 70% and 643 ml sterile water
NEW QUESTION: 3
You are running a mobile media application and are considering API Gateway for the client entry point. What benefits would this provide? Choose 2 answers
A. Throttling traffic
B. IP blacklisting
C. Caching API responses
D. Intrusion prevention
E. Load balancing
Answer: A,C
Explanation:
Explanation
API Logging, Caching, Throttling, Bursting and MonitoringInstead of invoking the backend API for every client call, developers can configure caching which will improve performance. Cache settings allow developers to control the way the cache key is built and the time-to-live (TTL) of the data stored for each method. The management API can be invoked to invalidate the cache. The pricing for this feature is based on the size of the cache.
Developers need to protect their backend APIs from deliberate misuse. They may also want to restrict the rate at which the API is invoked. Through throttling, it is possible to set a rate limit of API requests to avoid sudden spikes. API Gateway can also be configured to handle bursts of API calls for specific scenarios. Clients can include automatic retry logic when they receive a 429 HTTP response as a result of throttling. With the right configuration of cache and throttling, developers can increase the performance while securing the backend API.
Since API Gateway is a crucial element of an application, it needs to be monitored for uptime. For custom gateways, administrators need to configure native monitoring combined with agents. Amazon API Gateway integrates with CloudWatch, the one-stop monitoring service for all AWS services. By configuring an IAM role that has write access to CloudWatch logs, API Gateway can be monitored for a variety of metrics.
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Configuring Caching, Logging, Monitoring and Throttling
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Aalk - 2014-05-05 16:45:18
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