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- Vendor : Symantec
- Certifications : Symantec certification
- Exam Name : Agile Requirements Designer Proven Professional Exam
- Exam Code : 250-565
- Total Questions : 376 Q&As
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NEW QUESTION: 1
NEW QUESTION: 2
Section C (4 Mark)
Zenith Finance is a big financial firm which owns several mutual funds. The funds are managed individually by portfolio managers but it has an investment committee that oversees all of the funds. This committee is responsible for evaluating the performance of the funds relative to the appropriate benchmark and relative to stated investment objectives of each individual fund. During a recent investment committee meeting, the poor performance of its Equity Funds were discussed. In particular, the inability of the portfolio managers to outperform their benchmarks was highlighted. The net conclusion of the committee was to review the performance of the manager responsible for each fund and dismiss those managers whose performance had lagged substantially behind the appropriate benchmark.
The fund with the worst relative performance is the Zenith Large Cap Fund which invests in large cap stocks.
A review of the operations of the fund found the following:
* The turnover of the fund was almost double that of other similar style mutual funds
* The fund's portfolio manager solicited input from her entire staff prior to making any decision to sell an existing holding
* The beta of the Zenith Large Cap Fund's portfolio was 65% higher than the beta of other similar style mutual funds
* The portfolio manager refuses to increase the Capital Goods sector weighting because of past losses the fund incurred in the sector
* The portfolio manager sold all the fund's Oil Marketing Companies stocks as the price per barrel of oil rose above $105. He expects oil prices to fall back to the $80 to $85 per barrel
* No stock is considered for purchase in the Large Cap Fund unless the portfolio manager has 10 years of financial information on that company.
A committee member made the following 2 comments:
Comment 1: "One reason for the poor performance of Large Cap Mutual Fund is that the portfolio lacks recognizable companies. I believe that good companies make good investments Comment 2: "The portfolio manager of the Large Cap Fund refuses to acknowledge his mistakes. He seems to sell stocks that appreciate, but she holds stocks that have declined in value The two behavioral biases exhibited respectively in the above 2 comments from the committee are:
A. Money illusion & Mental accounting
B. Regret minimization & Conservatism
C. Representativeness Bias & Loss aversion Bias
D. Gambler's fallacy & Hindsight bias
NEW QUESTION: 3
Select and Place:
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NEW QUESTION: 4
The director of software development is concerned with recent web application security incidents, including the successful breach of a back-end database server. The director would like to work with the security team to implement a standardized way to design, build, and test web applications and the services that support them. Which of the following meets the criteria?
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