C_THR94_2311 Prüfungsinformationen & C_THR94_2311 Prüfungsmaterialien - C_THR94_2311 Zertifikatsfragen - Championlandzone

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  • Vendor : SAP
  • Certifications : SAP Certified Application Associate
  • Exam Name : SAP Certified Application Associate - SAP SuccessFactors Time Management 2H/2023
  • Exam Code : C_THR94_2311
  • Total Questions : 376 Q&As
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VCE Exam Simulator is a test engine designed specifically for certification exam preparation. It allows you to create, edit, and take practice tests in an environment very similar to an actual exam.
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    NEW QUESTION: 1
    Factor Analytics Capital Management makes portfolio recommendations using various factor models.
    Mauricio Rodriguez, a Factor Analytics research analyst, is examining the prospects of two portfolios, the FACM Century Fund (CF) and the FACM Esquire Fund (EF).
    The variance of returns are identical for the two funds. The estimates in Exhibit 1 were derived for CF and EF using monthly data for the past five years.

    Supervisor Barbara Woodson asks Rodriguez to use the Capita! Asset Pricing Model (CAPM) and a multifactor model (APT) to make a decision to continue or discontinue the EF fund. The two factors in the multifactor model are not identified. To help with the decision, Woodson provides Rodriguez with the capital market forecasts in Exhibit 2.

    After examining the prospects for the EF portfolio, Rodriguez derives the forecasts in Exhibit 3.

    Rodriguez also develops a 2-factor macroeconomic factor model for the EF portfolio. The two factors used in the model are the surprise in GDP growth and the surprise in Investor Sentiment. The equation for the macro factor model is:

    During an investment committee meeting, Woodson makes the following statements related to the 2-factor macroeconomic factor model.
    Statement 1: An investment combination in CF and EF that provides a GDP growth factor beta equal to one and an Investor Sentiment factor beta equal to zero will have lower active factor risk than a tracking portfolio consisting of CF and EF.
    Statement 2: When markets are in equilibrium, no combination of CF and EF will produce an arbitrage opportunity In their final meeting, Rodriguez informs Woodson that the CF portfolio consistently outperformed its benchmark over the past five years. Rodriguez makes the following comments to Woodson: "The consistency with which CF outperformed its benchmark is amazing. The difference between the CF monthly return and its benchmark return was nearly always positive and varied little over time." The historical performance of the CF portfolio is best summarized as:
    A. high tracking risk.
    B. high active risk.
    C. high information ratio.
    Answer: C
    Explanation:
    Explanation/Reference:
    Explanation:
    The information ratio equals active return divided by active risk. Active return equals the average difference between the CF portfolio return and the benchmark return. Active risk equals the standard deviation of the CF minus benchmark returns. From the comments made by Rodriquez about the historical performance of the CF portfolio, we know that the numerator of the information ratio is positive and the denominator is very close to zero. Therefore, the information ratio will be high.
    The fund standard deviation was very close to its benchmark (since its returns were nearly always a constant percentage above the benchmark). The CF fund rose and fell with the benchmark (same risk as the benchmark) but always beat the benchmark (outperformed the benchmark). Therefore, tracking risk (which is also referred to as active risk) is low. (Study Session 18, LOS 64.m)

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    Answer: D

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    B. Meet with the project team to decide how the remaining budget will be spent.
    C. Give the team extra time to finish tasks within the original timeline
    D. Keep the extra budget as management reserve until project closeout
    Answer: A


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