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CIW 1D0-720
CIW Advanced HTML5 and CSS3 Specialist
Questions and Answers | : 347 |
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NEW QUESTION: 1
Christopher Robinson, chairman of the board of directors for a private endowment fund, believes that the endowment fund for which he is responsible has diverged too far from its stated objectives. Over several years the board has increased the size of the fund's equity position beyond the stated limits of the investment policy statement. In an effort to realign the fund's investments, Robinson has elected to choose a mortgage-backed security (MBS) for inclusion in the endowment's portfolio. After surveying the MBS market, Robinson has selected four MBS securities to present as potential investments at the next investment committee meeting. Details on the selected MBS securities are presented below:
At the investment committee meeting, a fellow board member raises his concerns over the potential MBS investments stating, "While we all agree that the fixed-income proportion of the endowment is much too small, I am not sure the suggested MBS securities will fulfill the cash flow requirements of the endowment.
What risks are we taking on by allocating a portion of the portfolio to these investments? We cannot afford to end up with a timing mismatch between the cash needs of the endowment and the cash provided from its investments. Also, we have given no consideration to commercial mortgage backed securities (CMBS).
Isn't our analysis incomplete if we fail to give proper discussion of potential CMBS investment opportunities?" Robinson responded to his fellow board member by addressing the board member's concerns as follows:
"Since the cash requirements of the endowment fund fluctuate directly with interest rates, the cash flows provided from the MBS will provide adequate protection against cash shortfalls arising from differences in the timing of cash needs and cash sources. In addition, we can further reduce uncertainty surrounding the timing of cash flows by purchasing planned amortization class CMOs, which are securities issued against pools of MBS. CMBS were not presented due to the unacceptable risk profile of the comparable CMBS trading in the marketplace." Which of the following statements regarding the difference between the risk profiles of MBS-W and a comparable CMBS is least accurate?
A. Shortfalls in cash flow from the underlying properties of a CMBS can be augmented by the sale of the properties or the borrowers' other assets.
B. Relatively illiquid CMBS properties will increase the degree of balloon risk to the investor.
C. Contraction risk for a CMBS is significantly lower if the issue contains a defeasance provision.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Commercial mortgage-backed securities are collateralized using non-recourse loans on commercial (i.e., income-producing) properties. Non-recourse means that the only cash flow supporr provided from the loan comes from the ability of the property to generate income and from rhe value of the property itself. The lender cannot seize personal assets of the borrower to satisfy any portion of the unpaid obligation. (Study Session 15, LOS 55-m)
NEW QUESTION: 2
Which component stores application page changes In XML documents and merges the changes during the rendering of the page?
A. WebCenter Services
B. Metadata Services
C. WebCenter Spaces
D. Portals
E. WebCenter Framework
Answer: A
NEW QUESTION: 3
Which authentication method does OSPFv3 use to secure communication between neighbors?
A. MD5 HMAC
B. IPSec
C. PKI
D. plaintext
Answer: B
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CIW 1D0-720
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