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NEW QUESTION: 1
Cynthia Farmington, CFA, manages the Lewis family's $600 million securities portfolio. Farmington and the Lewis family have agreed that they should hire a manager of alternative investments to manage a portion of the portfolio containing those assets. As part of the hiring process, they attempted to do the necessary due diligence. They assessed each manager's organization, the relative efficiency of the markets each manager has invested in, the character of each manager, and the service providers, such as lawyers, that each manager has used. In particular, they hoped to find a manager who has run an operation with low employee turnover, has invested in efficient and transparent markets, has sound character, and has utilized reputable providers of external services.
Eventually, Farmington hires the firm owned and managed by Bruce Carnegie, CFA, to diversify the Lewis portfolio into alternative investments. Carnegie will manage the portion of the portfolio containing these assets, and Farmington will continue to manage the remainder of the portfolio in a mix of approximately
50/50 high-grade stocks and bonds. Over the past ten years, the stock portion of the portfolio has closely tracked the S&P 500 and the bond portfolio has closely tracked a broad bond index.
Carnegie and Farmington meet to discuss how Carnegie should proceed. Farmington mentions that she and the Lewis family have agreed that the main goal of the alternative investments that Carnegie will manage should be to enhance the return of the overall portfolio. Diversification is only a secondary goal. In particular, Farmington says the Lewis family has expressed an interest in having the portfolio take positions in private equity. Farmington says that she envisions that Carnegie should take five positions of about 55 million each in distinct private equity investments, and each position should have about a 5-year horizon.
Farmington states that she has grown very dependent on benchmarks for her investing activities, and has concerns with respect to how she and Carnegie will monitor the success of the portfolio allocation in private equity. She has read that there can be a problem with the valuation of private equity indices in that they depend on price-revealing events like IPOs, mergers, and new financing. Thus, the repricing of the index occurs infrequently. Carnegie concludes that the solution is to follow the commonly accepted practice of creating their own private equity benchmark.
Farmington asks Carnegie to explain the choices that exist in the private equity market. Carnegie explains that there are two basic categories: venture capital funds and buyout funds. Farmington asks that Carnegie explain the pros and cons of one over the other. Carnegie states that buyout funds would probably have higher return potential, fewer losses, earlier cash flows, and less error in the measurement of the returns.
Carnegie comments that before he proceeds he will need to communicate with the clients. Farmington says this communication is not necessary because the Lewis family has largely followed her advice with very few questions. Even when the market has fallen and the portfolio has not done well, the Lewis family has not asked for any changes.
With respect to the special issues that an alternative investment manager should address with a private wealth client, from the conversation between Farmington and Carnegie, Carnegie will need to discuss all of the following with the possible exception of:
A. tax issues.
B. other closely held investments.
C. decision risk.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Farmington indicated that the clients have nor expressed a concern even when the marker and portfolio have not performed well. This indicates that decision risk, the risk of the client irrationally requesting a change in strategy because of recent investment losses, may nor be an issue. Tax issues are always important. Since Carnegie will be investing in private equity, he certainly needs to find out about other closely held investments the Lewis family holds. Finally, the horizon is important, and it is especially important because Farmington indicated a five-year horizon for the private equity investments. That is too short for this category of asset. (Study Session 14, LOS 40.c)

NEW QUESTION: 2
Paul is a computer forensics investigator working for Tyler & Company Consultants. Paul has been called upon to help investigate a computer hacking ring broken up by the local police. Paul begins to inventory the PCs found in the hackers hideout. Paul then comes across a PDA left by them that is attached to a number of different peripheral devices. What is the first step that Paul must take with the PDA to ensure the integrity of the investigation?
A. Photograph and document the peripheral devices
B. Power off all devices if currently on
C. Unplug all connected devices
D. Place PDA, including all devices, in an antistatic bag
Answer: A

NEW QUESTION: 3
Which of the following about the default route is correct? (Multiple Choice)
A. There must be a default route in the routing table of any router
B. The default route can only be manually configured by the administrator.
C. In the routing table the default route appears as a route to the network 0 0 0 0 (the mask is also 0 0 00)
D. If the destination address of the packet cannot match any destination address of the routing table, the packet will be forwarded by selecting the default route
Answer: C,D

NEW QUESTION: 4
ITクローザーの外のオフィススペースにあるときにネットワークポートが悪用されないように保護するための2つの推奨事項は何ですか？ （2つ選択してください。）
A. 未使用のポートをシャットダウンします
B. 静的ARPエントリを設定します
C. ポートベースの認証を実装する
D. ポートを固定速度に構成します
E. ポートでPortFast機能を有効にする
Answer: A,C

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