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NEW QUESTION: 1
You are a new Project Manager that has been entrusted with a project to develop a machine which produces auto components. You have put together a realistic and achievable timeline for all your project activities after consulting with your project team members and reaching an agreement.
However, you observe that one of your team members is working overtime because of his poor prioritization of project activities. Should you reward this team member for his behavior?
A. No, because this is a result of poor planning by the team member.
B. No, because there is no budget for incentives in your project cost.
C. Yes, because you can compel the other team members to work over time as well.
D. Yes, because he is committed to work over time.
Answer: A
NEW QUESTION: 2
Wealth Management's top economist, Frederick Milton, is an economic cycle forecaster- Milton's economic forecasts indicate an economic upswing that will impact all goods and services sectors. Milton presents his economic findings to the rest of Wealth Management's professionals at their monthly meeting. All are excited about Milton's forecast of an improving economic condition that should translate into a steadily rising stock market.
Nathaniel Norton and Timothy Tucker have confidence in Milton's capabilities and decide to meet with their clients. Their first meeting is with Elizabeth Mascarella to whom Norton recommends a dynamic asset allocation strategy to take advantage of Milton's forecast. However, Mascarella is concerned because the somewhat persistent back-and-forth of economic activity has translated into an oscillating stock market.
Mascarella questions Norton's recommendation and asks Tucker which strategy should be followed if the market continues as it has, instead of making such "wonderful" strides.
It is one year later and Frederick Milton's economic forecast has been correct, and the market has trended upward as expected. Mascarella's strategic allocation to equity, which was $600,000 of a total portfolio of
$1,000,000, has increased 20%. Her overall portfolio, which contains equity, debt, and some cash, is now valued at $1,150,000. Tucker meets with Mascarella and indicates it may be time to rebalance her portfolio.
Assuming a steadily rising market, the best strategy for Mascarella is:
A. constant mix.
B. buy and hold.
C. constant proportion portfolio insurance.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In a market expected to increase in relatively constant fashion, constant proportion portfolio insurance will outperform the other strategies. In a constant proportion strategy, a fixed proportion (m) of the cushion (= assets - floor value) is invested in stocks. CPPI refers to a constant proportion strategy with m > 1. Buy and hold is equivalent to the constant proportion strategy with m - 1, so its performance would be good, but not as good. (Study Session 16, LOS 46.h)
NEW QUESTION: 3
A. Option B
B. Option D
C. Option A
D. Option C
Answer: C,D
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