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NEW QUESTION: 1
Consider the following transactional information for the investment account of an underwriting syndicate:
1 st Quarter Ending portfolio value: $50,800,000 Total amount invested: $46,100,000
2 nd Quarter Ending portfolio value: $51,100,000 Total amount invested: $50,800,000
3 rd Quarter Ending portfolio value: $51,000,000 Total amount invested: $51,100,000
4 th Quarter Ending portfolio value: $54,500,000 Total amount invested: $50,000,000
Using this information, what is the annual time-weighted rate of return for this portfolio? Assume no taxes or transaction charges.
A. 20.59% per year
B. 22.14% per year
C. 19.59% per year
Answer: A
Explanation:
The time-weighted rate of return is the preferred method of return calculation in the investment management industry, primarily because this method is not sensitive to significant additions and withdrawals of funds from portfolios under examination. The calculation of the time-weighted rate of return involves three steps, which are illustrated as follows:
Step 1:Price the portfolio immediately prior to any significant additions or withdrawals. Separate the portfolio into a series of sub-periods based on the dates of cash inflows and outflows.
Step 2:Calculate the holding period return for each sub-period.
Step 3:Determine the annualized holding period return by linking or compounding the holding period return of each sub-period. If the investment is for more than one year, use the geometric mean of the annual returns as the time-weighted rate of return. If the investment is for less than one year, compound the sub-period returns to obtain an annualized measurement.
To begin the process of determining the time-weighted rate of return, we would break the portfolio up into the subsequent series of cash flows. However, in this example, the cash flows are already aggregated for us and we can move on to the next step: determining the holding period return for each sub-period. This process is detailed as follows:
Quarter 1 holding period return = [($50,800,000 ending value - $46,100,000 invested) / $46,100,000 invested] = 10.19523%
Quarter 2 holding period return = [($51,100,000 ending value - $50,800,000 invested) / $50,800,000 invested] = 0.59055%
Quarter 3 holding period return = [($51,000,000 ending value - $51,100,000 invested) / $51,100,000 invested] = (0.1957%)
Quarter 4 holding period return = [($54,500,000 ending value - $50,000,000 invested) / $50,000,000 invested] = 9.00%
Now that the holding period return for each sub-period has been determined, we must annualize the return measure by taking the product of all four quarterly returns. This process is illustrated below:
[(1 + .10195) * (1 + .00591) * (1 - .00196) * (1 + .09) - 1] = .2059 or 20.59%
When calculating the time-weighted rate of return, remember that the total amount invested is the relevant figure, not the beginning portfolio value. Notice that during the fourth quarter, the total amount invested does not equal the ending amount for the third quarter. This differential could be explained by numerous phenomena. Perhaps the difference is due to a cash withdrawal from the account. Maybe it was used to pay expenses or meet an outstanding margin call. What is important to note is the fact that this money was not invested, and should not be included in the holding period return for the fourth quarter. So said, whenever possible you should use the total amount invested rather than the beginning portfolio value in the calculation of the sub-period holding period return. If you chose 19.59%, remember that in the calculation of the time-weighted rate of return, it is the geometric mean that is used rather than the arithmetic mean.

NEW QUESTION: 2
What services must be configured and running on the SAP Hana server to monitor the SAP
Hana instance in SAP Solution manager?
There are 2 correct answers to this question
Response:
A. SAP host agent
B. preprocessor service
C. SAP SMD agent
D. compile service
Answer: A,C

NEW QUESTION: 3
You are migrating an existing solution to Azure. The solution includes a user interface tier and a database tier.
The user interface tier runs on multiple virtual machines (VMs). The user interface tier has a website that uses Node.js. The user interface tier has a background process that uses Python. This background process runs as a scheduled job. The user interface tier is updated frequently. The database tier uses a self-hosted MySQL database.
The user interface tier requires up to 25 CPU cores. You must be able to revert the user interface tier to a previous version if updates to the website cause technical problems. The database requires up to 50 GB of memory. The database must run in a single VM.
You need to deploy the solution to Azure.
What should you do first?
A. Deploy the user interface tier to a VM. Use multiple availability sets to continuously deploy updates from Microsoft Visual Studio Online.
B. Deploy the database to a VM that runs Windows Server on the Standard tier.
C. Deploy the entire solution to an Azure website. Use a web job that runs continuously to host the database.
D. Deploy the entire solution to an Azure website. Run the database by using the Azure data management services.
Answer: D

NEW QUESTION: 4
The use of a withdrawal design is LEAST appropriate when:
A. extraneous variables cannot be controlled.
B. multiple participants are being evaluated.
C. evaluating an intervention for severe problem behavior.
D. evaluating the effects of an intervention for behavior that has multiple functions.
Answer: C