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NEW QUESTION: 1
Security A and B both have expected returns of 10%, but the standard deviation of Security A is 10% while that of security B is 20%. Borrowings are not permitted. A portfolio manager who wishes to maximize his probability of earning a 25% return during the year should invest in:
A. Security A
B. None of the above
C. 50% in Security A and 50% in Security B
D. Security B
Answer: D
Explanation:
Explanation
Security A 'dominates' security B, ie it offers the most return per unit of volatility. However, because it is less volatile, its returns are likely to be more concentrated around its mean compared to Security B which will have
'fatter tails' compared to Security A. Therefore Security B will offer a much better chance of making the desired 25% return. Of course, this also means that Security B is much more likely to lose a lot more money than Security A. However, if the portfolio manager is only interested in maximizing his chances of making a
25% or greater return, he should select Security B. The answer can be verified using Excel's Normdist formula, and probability of exceeding 25% will be given by [=1-NORMDIST(0.25,0.1,0.1,TRUE)] for Security A and =1-NORMDIST(0.25,0.1,0.2,TRUE)] for Security B. A combined portfolio of the two will have a return of 10% and variance less than that of Security B (or at the most equal to the weighted average of the two variances, even if their correlation is 1), which means a combined portfolio will also have a lower probability of exceeding a 25% return.
This question reflects how portfolio managers may be tempted to make sub-optimum decisions for their investors by swinging for the fences by taking large bets, for example, when they have had a big drawdown and have to make it up to the high water mark levels before they earn performance fees.

NEW QUESTION: 2
プロジェクトが最終段階に近づくと、プロジェクトマネージャーからフォローアップレポートが送信されます。一部の利害関係者は、一部の未解決の問題がレポートから除外されているとコメントしています。
これを防ぐために、プロジェクトマネージャーは何をすべきですか？
A. より適切に管理されたプロジェクトドキュメント
B. 統合変更管理の実行プロセスに従いました
C. リスクの監視プロセスを実装しました
D. 通信監視プロセスを実施しました
Answer: A

NEW QUESTION: 3
要件収集プロセスの出力はどれですか？
A. 要件のトレーサビリティマトリックス
B. WBS辞書
C. プロジェクトスコープステートメント
D. 作業パフォーマンスの測定
Answer: A

NEW QUESTION: 4
Ein Techniker überprüft die Systemaktualisierungen. Einige der Updates beheben Schwachstellen in geschäftskritischen Servern und müssen sofort ausgeführt werden. Welche der folgenden Maßnahmen sollte der Techniker ZUERST durchführen?
A. Rückzugsplan
B. Risikoanalyse
C. Implementierungsplan
D. Karte wechseln
Answer: B