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NEW QUESTION: 1
Which of the following elements belong to the Warehouse Management organizational structure? (Choose three)
A. Plant
B. The storage location
C. The storage type
D. The picking area
E. The storage section
Answer: C,D,E
NEW QUESTION: 2
What two IBM Power offerings, not available on x86, allow customers to move capacity activations amongst servers and change LPAR processor and memory capacity?
A. Micro-partitions and LPAR Mobility
B. Capacity on Demand and Enterprise Pools
C. Uncapped Partitions and Dynamic SMT
D. Dynamic Processor Deallocation and Active Memory Expansion
Answer: B
NEW QUESTION: 3
Eugene Price, CFA, a portfolio manager for the American Universal Fund (AUF), has been directed to pursue a contingent immunization strategy for a portfolio with a current market value of $100 million. AUF's trustees are not willing to accept a rate of return less than 6% over the next five years. The trustees have also stated that they believe an immunization rate of 8% is attainable in today's market. Price has decided to implement this strategy by initially purchasing $100 million in 10-year bonds with an annual coupon rate of 8.0%, paid semiannually.
Price forecasts that the prevailing immunization rate and market rate for the bonds will both rise from 8% to
9% in one year.
While Price is conducting his immunization strategy he is approached by April Banks, a newly hired junior analyst at AUF. Banks is wondering what steps need to be taken to immunize a portfolio with multiple liabilities. Price states that the concept of single liability immunization can fortunately be extended to address the issue of immunizing a portfolio with multiple liabilities. He further states that there are two methods for managing multiple liabilities. The first method is cash flow matching which involves finding a bond with a maturity date equal to the liability payment date, buying enough in par value of that bond so that the principal and final coupon fully fund the last liability, and continuing this process until all liabilities are matched. The second method is horizon matching which ensures that the assets and liabilities have the same present values and durations.
Price warns Banks about the dangers of immunization risk. He states that it is impossible to have a portfolio with zero immunization risk, because reinvestment risk will always be present. Price tells Banks,
"Be cognizant of the dispersion of cash flows when conducting an immunization strategy. When there is a high dispersion of cash flows about the horizon date, immunization risk is high. It is better to have cash flows concentrated around the investment horizon, since immunization risk is reduced." Regarding Price's statements on the two methods for managing multiple liabilities, determine whether his descriptions of cash flow matching and horizon matching are correct.
A. Only his statement about cash flow matching is correct.
B. Both statements are correct -OR- both statements are incorrect.
C. Only his statement about horizon matching is correct.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Price has correctly described cash flow matching, bur has incorrectly described horizon matching. Cash flow matching involves finding a bond with a maturity date equal to the liability payment date, buying enough in par value of that bond so that the principal and final coupon fully fund the last liability, and continuing this process, using a recursive procedure, until all liabilities are matched. Ensuring that assets and liabilities have the same present values and durations are features of multi-cash flow immunization.
Horizon matching (a.k.a. combination matching) is a combination of cash flow matching and multiple liability immunization. (Study Session 9, LOS 29.m)
NEW QUESTION: 4
Two routers that use a POS interface are connected back-to-back. The interfaces are operational with no alarms appearing. When the routers are connected using an SDH network, alarms appear on the router and the interface status goes down. Which action will fix this issue?
A. Reset the POS interface.
B. Check the ADM switch for correct framing.
C. Swap the POS interface.
D. Change the framing type on the router POS interface.
Answer: D
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