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NEW QUESTION: 1
Router RTA is configured as follows:
RTA (config)#router rip
RTA(config-router)#network 10.0.0.0
RTA(config-router)#distribute-list 44 in interface BRIO
RTA(config-router)#exit
RTA(config)#access-list 44 deny 172.16.1.0 0.0.0.255
RTA(config)#access-list 44 permit any What are the effects of this RIP configuration on router RTA? (Choose two)
A. no routing updates will be sent from router RTA on interface BRIO to router RTX
B. user traffic from the 172.16.1.0 network is denied by access-list 44
C. router RTA will not advertise the 10.0.0.0 network to router RTX
D. the route to network 172.16.1.0 will not be entered into the routing table on router RTA
E. the routing table on router RTA will be updated with the route to router RTW
Answer: D,E
Explanation:
Distribute list are used to filter routing updates and they are based on access lists. In this case, an access list of 44 was created to deny the route from network 172.16.1.0/24 so this route will not be entered into the routing table of RTA. But the route from RTW can be entered because it is not filtered by the access list A and B are not correct because the distribute list is applied to the inbound direction of interface BRI0 so outgoing routing updated will not be filtered. Distribute list just filters routing updates so user traffic from network 172.16.1.0 will not be denied.
NEW QUESTION: 2
SIMULATION
Joe and Sara Finnegan are both 62 years old and live in Kerrville, Texas. They are retired and have a combined investable net worth of $2 million, the bulk of which was inherited from Sara's father's estate.
Included in their total wealth is Mr. Finnegan's $500,000 defined-contribution retirement plan that is managed separately in a 401(k) retirement plan. Joe Finnegan makes the investment decisions for his 401 (k) plan, but Sara Finnegan makes the investment decisions for their other portfolio. Mr. Finnegan will not begin withdrawing funds from his retirement plan until he reaches the age of 70.
The Finnegans have no children, but they have agreed to pay the nursing home expenses for Joe's 86 year old father, who is in very poor health. These expenses are projected to be $130,000 per year, and are expected to last for at least three years. The Finnegans home in Kerrville is valued at $750,000. The Finnegans do not have a mortgage on their home. They enjoy traveling around the world and project living expenses to total $ 115,000 per year. The Finnegans' entire income is generated from their portfolio and is taxed at 15%. The Finnegans would like to exclude inflation from any and all projections related to their account, so that they can evaluate their position based on current dollar amounts.
Mr. Finnegan's 401(k) plan is held in a local bank trust department. The trust department offers its clients a range of portfolio allocations from aggressive to conservative as shown in Exhibit 1. Without regard for asset class characteristics or his own risk and return objectives, Mr. Finnegan has selected a portfolio that is equally weighted in each asset class, lie has instructed his trust manager to rebalance the portfolio at the end of each year to maintain the equal weighting. Mr. Finnegan is concerned about potential losses in his account, but prefers not to make any investment decisions beyond maintaining his initial allocation.
Identify and discuss two weaknesses commonly found in defined-contribution retirement plans that are evident in Joe Finnegan's allocation of his retirement account.
Answer:
Explanation:
See explanation below
Explanation/Reference:
Explanation:
4 points-Allow I point for each identified weakness and I point for each supporting discussion. (Study Session 3, LOS 11 .b) For the exam:
1/n diversification: Defined benefit plan participants tend to divide their assets equally among all available alternatives.
Discussion:
Finnegan chose to divide his retirement assets equally among the offered asset classes. This reflects the behavioral trait known as 1/n diversification. Knowing generally that they should diversify their portfolios but unsure of exactly how to go about doing that, plan participants invest equal amount in each fund in the list of funds provided by the plan sponsor. They tend to assume that all the funds provided by the employer/ sponsor are appropriate for their individual portfolios. Recognizing the potential for 1/n diversification, the sponsor should provide a list of funds that if held together would provide a well-diversified portfolio.
For the exam:
Status quo bias: Participants tend to maintain their portfolio allocations or leave their portfolios untouched.
Discussion:
Status quo bias can have two effects: (1) investors will tend to stick with an original decision and maintain their original allocations without a specific reason for doing so, or (2) they will make an original allocation and then do nothing. In this case, we are not told specifically why Finnegan divided his assets equally among the five alternatives (i.e., used 1/n diversification) but he has even gone so far as to readjust the portfolio back to the original allocation without a specific goal-related reason for doing so.
NEW QUESTION: 3
Given the code fragment:
What is the result?
Answer = 0
A. Compilation fails only at line n2.
B. Compilation fails only at line n1.
C.
D. Invalid calculation
E. Compilation fails only at line n1 and line2.
Answer: E
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