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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 to his market-neutral long-short managers and to his passive market index fund manager.
B. allocating funds to his long-only active managers and to his passive market index fund manager.
C. allocating funds solely to his market-neutral long-short managers.
Answer: A
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
An IS auditor has identified the lack of an authorization process for users of an application. The IS auditor's main concern should be that:
A. more than one individual can claim to be a specific user.
B. there is no way to limit the functions assigned to users.
C. user accounts can be shared.
D. users have a need-to-know privilege.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Without an appropriate authorization process, it will be impossible to establish functional limits and accountability. The risk that more than one individual can claim to be a specific user is associated with the authentication processes, rather than with authorization. The risk that user accounts can be shared is associated with identification processes, rather than with authorization. The need-to-know basis is the best approach to assigning privileges during the authorization process.

NEW QUESTION: 3
You are designing an Azure web application that includes many static content files.
The application is accessed from locations all over the world by using a custom domain name.
You need to recommend an approach for providing access to the static content with the least amount of latency.
Which two actions should you recommend? Each correct answer presents part of the solution.
A. Configure a CNAME DNS record for the Azure Content Delivery Network (CDN) domain.
B. Place the static content in Azure Table storage.
C. Configure a custom domain name that is an alias for the Azure Storage domain.
D. Place the static content in Azure Blob storage.
Answer: A,D
Explanation:
B: There are two ways to map your custom domain to a CDN endpoint.
1.Create a CNAME record with your domain registrar and map your custom domain and subdomain to the CDN endpoint
2.Add an intermediate registration step with Azure cdnverify
C: The Azure Content Delivery Network (CDN) offers developers a global solution for delivering high-bandwidth content by caching blobs and static content of compute instances at physical nodes in the United States, Europe, Asia, Australia and South America. The benefits of using CDN to cache Azure data include: / Better performance and user experience for end users who are far from a content source, and are using applications where many 'internet trips' are required to load content / Large distributed scale to better handle instantaneous high load, say, at the start of an event such as a product launch
Reference: Using CDN for Azure
https://azure.microsoft.com/en-gb/documentation/articles/cdn-how-to-use/
Reference: How to map Custom Domain to Content Delivery Network (CDN) endpoint
https://github.com/Azure/azure-content/blob/master/articles/cdn-map-content-to-customdomain.md
https://github.com/Azure/azure-content/blob/master/articles/cdn-map-content-to-customdomain.md