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NEW QUESTION: 1
Security analysts Andrew Tian, CFA, and Cameron Wong, CFA, are attending an investment symposium at the Singapore Investment Analyst Society. The focus of the symposium is capital market expectations and relative asset valuations across markets. Many highly-respected practitioners and academics from across the Asia-Pacific region are on hand to make presentations and participate in panel discussions.
The first presenter, Lillian So, President of the Society, speaks on market expectations and tools for estimating intrinsic valuations. She notes that analysts attempting to gauge expectations are often subject to various pitfalls that subjectively skew their estimates. She also points out that there are potential problems relating to a choice of models, not all of which describe risk the same way. She then provides the following data to illustrate how analysts might go about estimating expectations and intrinsic values.
The next speaker, Clive Smyth, is a member of the exchange rate committee at the Bank of New Zealand.
His presentation concerns the links between spot currency rates and forecasted exchange rates. He states that foreign exchange rates are linked by several forces including purchasing power parity (PPP) and interest rate parity (IRP). He tells his audience that the relationship between exchange rates and PPP is strongest in the short run, while the relationship between exchange rates and IRP is strongest in the long run. Smyth goes on to say that when a country's economy becomes more integrated with the larger world economy, this can have a profound impact on the cost of capital and asset valuations in that country.
The final speaker in the session directed his discussion toward emerging market investments. This discussion, by Hector Ruiz, head of emerging market investment for the Chilean Investment Board, was primarily concerned with how emerging market risk differs from that in developed markets and how to evaluate the potential of emerging market investments. He noted that sometimes an economic crisis in one country can spread to other countries in the area, and that asset returns often exhibit a greater degree of non-normality than in developed markets.
Ruiz concluded his presentation with the data in the tables below to illustrate factors that should be considered during the decision-making process for portfolio managers who are evaluating investments in emerging markets.
When the first presenter refers to skewed estimates and problems with a choice of models, she is referring to:
A. psychological traps and model and input uncertainty.
B. selective bias syndrome and risk specification error.
C. psychological traps and risk specification error.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Ms. So is referring to psychological traps and model and input uncertainty. Psychological traps are behavioral characteristics such as anchoring, status quo, overconfidence, etc. The main point is that these traps can result in biased capital market expectations. Problems relating to the choice of models and accuracy of data are known as model and input uncertainty. The analyst wants to choose the model that most correctly describes the marker valuation process, bur any time there is a choice, there is a chance that the incorrect model will be chosen. (Study Session 6, LOS 23.a)
NEW QUESTION: 2
Which of the following is the most common risk with a Personal or Private Investment Company (PIC)?
A. They are usually established in financial secrecy havens
B. They often lack transparent ownership
C. They are almost always owned by politically exposed persons
D. They are not publicly traded
Answer: B
NEW QUESTION: 3
You are installing a pair of Cisco Nexus 3132Q-V cluster switches and receive several syntax errors when the reference configuration file (RCF) is applied.
In this scenario, what are two reasons for these errors? (Choose two.)
A. An RCF file for a different version has been loaded.
B. The RCF was already applied.
C. The switch was not in maintenance mode.
D. Cables were not removed before applying the RCF.
Answer: A,B
NEW QUESTION: 4
You have an on-premises Microsoft SQL server that has a database named DB1. DB1 contains several tables that are stretched to Microsoft Azure.
A network administrator upgrades the hardware firewalls on the network.
You need to verify whether data migration still runs successfully.
Which stored procedure should you run?
A. Sys_sp_rda_test_connection
B. Sys_sp_testlinkedserver
C. Sys_sp_rda_reauthorized_db
D. Sp_set_firewall_rule
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The Sys_sp_rda_test_connection cmdlet tests the connection from SQL Server to the remote Azure server and reports problems that may prevent data migration.
References: https://docs.microsoft.com/en-us/sql/relational-databases/system-stored-procedures/sys-sp- rda-test-connection-transact-sql?view=sql-server-2017