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NEW QUESTION: 1
Mary Carr is 62 years old, in good health, and will retire in four years from her position as the CEO and chairman of the board of a large professional services firm, Appleton Professional Services, which is located in the midwestern United States. Carr has approached Tim Houlis, her financial planner, for help in preparing an investment policy statement and accompanying asset allocation. Jack Timmons is Houlis' assistant.
In a lunch meeting with Houlis and Timmons, Carr reveals that she is thinking of moving this year to be closer to Appleton's largest client. She is concerned about developing an investment plan now given that she will no longer have contact with Houlis if she does move. Houlis reassures her that this is not a problem. He states that a properly constructed investment policy statement can be readily implemented by her new financial advisor. Timmons states that the investment policy statement is a long-term document that should be changed only if the outlook for equities versus bonds and other assets changes.
Carr's parents were successful business people who owned a series of small firms. Their success, however, did not come without challenges. Twice they had to liquidate businesses in which they were the primary shareholders. As a child, Carr became accustomed to the uncertainties of the entrepreneurial world. When she graduated from college, her parents provided her with the funds to purchase Appleton Professional Services. Appleton was a small firm at that point, but Can-has grown it into one of the larger firms in its industry, even though the professional services industry is cyclical and is susceptible to economic recessions. Appleton went public eight years ago and Carr retained a majority shareholder position when it did. Over time she has sold some of the stock but still has a controlling position in the firm.
Despite the business difficulties Carr's parents experienced, they were able to amass a sizeable fortune in their later years. Including her inheritance and holdings in Appleton stock, Carr has a portfolio with a current value of $6,000,000, most of which is invested in Appleton and other domestic and international equities. Carr has instructed Houlis and Timmons to grow her portfolio over time, focusing on capital appreciation and achieving long-term return goals. She would like to leave her children a sizeable inheritance.
Carr is single with two children. Her oldest child, Mark, is 25 years old and financially independent. Her youngest son, John, is a junior in college at a prestigious liberal arts college in New England. The tuition payment for his last year of college of approximately $40,000 is due at the end of this year. She has no mortgage on her house. Carr is an avid bird watcher and gifts $50,000 a year to a local environmental group. She is concerned with the destruction of bird habitat, so she does not want to invest in highly- polluting industries or firms that are involved in real estate development.
When she retires, Carr will receive a lump-sum, after-tax distribution of approximately $500,000 from her firm. She will also begin collecting an annual pension payment equal to her current salary. The pension payment is indexed to inflation. She will be covered under Appleton's health insurance plan in retirement.
Carr spends $ 170,000 a year on vacations and living expenses, which is about equal to her current salary at Appleton.
Houlis estimates that Carr is taxed at an effective marginal rate of 30% on capital gains and income. Houlis estimates an inflation rate of 3% for the rest of Carr's life expectancy, which he projects at 20 years or more, given her good health.
With regard to generating adequate liquidity for Carr's portfolio, Timmons states that she need not invest entirely in income-generating assets. Instead, Carr can generate income from stock dividends, bond coupons, and the sale of assets. By being willing to generate income through the sale of assets, Carr would be able to broaden the types of securities available to her for investment. Timmons states that the problem with most assets that produce income (e.g., dividend paying stocks) is that their expected return is usually lower. He states that the advantage of his approach is that Carr could pursue higher return assets, such as small company stocks.
Are Houlis and Timmons' statements concerning the investment policy statement made at the lunch meeting correct?
A. Both statements are correct.
B. Only one statement is correct.
C. Neither statement is correct.
Houlis' statement regarding the IPS is correct. A properly constructed investment policy statement can be readily implemented by her new financial advisor. The investment policy statement is transportable, provided the investor's circumstances have not changed.
Timmons' statement regarding the IPS is incorrect. Although it is true that the IPS is a long-term document, a change in the investors circumstances would lead to a change in the IPS. A change in the outlook for equities and other assets may affect the investors asset allocation, but this would not change the IPS.
(Study Session 18.LOS 68.d,c)
NEW QUESTION: 2
Identify the correct statements related to support for descriptive flexfields in Profile Management. Select three.
A. Descriptive flexfields are supported for business object "Rating Models".
B. Descriptive flexfields are supported but not enabled out of the box for business object "Education Establishments".
C. Descriptive flexfields are enabled out of the box for business object "Education Establishments".
D. Descriptive flexfileds are supported for business object "Rating Levels".
E. Descriptive flexfields are enabled out of the box for business object "Content Items" and "Profile Items"
Note: *Descriptive flexfields (DFFs) allow you to extend Oracle applications to meet business requirements without the need for programming. You can use descriptive flexfields in the Oracle Trade Management UI to gather information , important and unique to your business, that would not otherwise be captured.
You can customize a descriptive flexfield to capture just the information your organization needs. The flexfield structure can depend on the value of a context field and display only those fields (segments) that apply to the particular type of context.
* Two business objects in Profile Management that support Descriptive Flexfields are Education Establishments and Content Items.
NEW QUESTION: 3
You have an Azure subscription named Subscription1. Subscription1 contains the virtual machines in the following table.
Subscription1 contains a virtual network VNet1 that has the subnets in the following table.
VM3 has multiple network adapters, including a network adapter named N1C3. IP forwarding is enabled on NIC3. Routing is enabled on VM3. You create a route table named RT1. RT1 is associated to Subnet1 and Subnet2 and contains the routes in the following table.
You apply RT1 to Subnet1
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.
NEW QUESTION: 4
Which two actions influence the EIGRP route selection process? (Choose two)
A. The router must use the advertised distance as the metric for any given route
B. The router calculates the best backup path to the destination route and assigns it as the feasible successor.
C. The advertised distance is calculated by a downstream neighbor to inform the local router of the bandwidth on the link
D. The router calculates the reported distance by multiplying the delay on the exiting Interface by 256.
E. The router calculates the feasible distance of all paths to the destination route
The reported distance (or advertised distance) is the cost from the neighbor to the destination. It is calculated from the router advertising the route to the network. For example in the topology below, suppose router A & B are exchanging their routing tables for the first time. Router B says "Hey, the best metric (cost) from me to IOWA is 50 and the metric from you to IOWA is 90" and advertises it to router A.
Router A considers the first metric (50) as the Advertised distance. The second metric (90), which is from NEVADA to IOWA (through IDAHO), is called the Feasible distance.
The reported distance is calculated in the same way of calculating the metric. By default (K1 = 1, K2 = 0, K3
= 1, K4 = 0, K5 = 0), the metric is calculated as follows:
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