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NEW QUESTION: 1
Millennium Investments (MI), an investment advisory firm, relies on mean-variance analysis to advise its clients. Mi's advisors make asset allocation recommendations by selecting the mix of assets along the capital allocation line that is most appropriate for each client.
One of MPs clients, Edward Alverson, 60 years of age, requests an analysis of four risky mutual funds (Fund W, Fund X, Fund Y, and Fund Z). After examining the four funds, MI finds that all four mutual funds are equally weighted portfolios, and that all of the funds, except Fund Z, are mean-variance efficient. MI also finds that the correlations between all pairs of the mutual funds are less than one.
MI calculates the average variance of returns across all assets within each mutual fund, the average covariance of returns across all pairs of assets within each mutual fund, and each mutual fund's total variance of returns. The results of Mi's calculations are reported in Exhibit 1.

During his meeting with the MT advisors, Alverson explains that he will retire soon, and, consequently, is highly risk-averse. Alverson agrees with Mi's reliance on mean-variance analysis and makes the following statements:
Statement 1: All portfolios lying on the minimum variance frontier are desirable portfolios.
Statement 2: Because I am highly risk-averse, I expect that my investment portfolio on the capital allocation line will have risk and return equal to that of the global minimum variance portfolio.
MI operates under the assumption that all investors agree on the forecasts of asset expected returns, variances, and correlations. Based on these assumptions, MI created the Millennium Investments 5000 Fund (MI-5000), which is a market value-weighted portfolio of all assets in the market. MI derives the forecasts for the MI-5000 Fund and for a fund comprising short-term government securities shown in Exhibit 2.

After assessing Alverson's level of risk aversion, Mi's advisors determine that the appropriate standard deviation for Alverson's investment portfolio equals 12%, and that Alverson can achieve his target standard deviation though appropriate allocations to the MI-5000 Fund and to the Government Securities Fund.
Of the four mutual funds listed in Exhibit 1, which is most likely to include the largest number of assets?
A. Fund W.
B. Fund X.
C. Fund Z.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The variance for an equally-weighted portfolio approaches the average covariance of the assets in the portfolio as the number of assets in the portfolio increases. Of the four portfolios, Fund Ws variance is closest to its average asset covariance. While not necessary to answer this question, we could derive the exact number of assets in each portfolio using the formula for the variance of an equally weighted portfolio:

Therefore, the variance of an equally weighted portfolio approaches the average covariance as n gets large. (Study Session 18, LOS 64.d)

NEW QUESTION: 2
You have an enterprise certification authority (CA) named CA1.
You have a certificate template named UserAutoEnroll that is based on the User certificate template.
Domain users are configured to autoenroll for UserAutoEnroll.
A user named User1 has an email address defined in Active Directory. A user named User2 does not have
an email address defined in Active Directory.
You discover that User1 was issued a certificate based on UserAutoEnroll template automatically.
A request by user2 for a certificate based on the UserAutoEnroll template fails.
You need to ensure that all users can autoenroll for certificated based on the UserAutoEnroll template.
Which setting should you configure from the properties on the UserAutoEnroll certificate template?
A. Issuance Requirements
B. Request Handling
C. Subject Name
D. Cryptography
Answer: C

NEW QUESTION: 3
What can you do with the code inspector?
There are 2 correct answers to this question
Response:
A. Create your own inspections, object sets and check variants
B. Create an object set to represent the programs and objects to be inspected
C. Choose from only the performance, security and user interface check categories
D. Create only local inspections, objects sets and check variants
Answer: B,D

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