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NEW QUESTION: 1
Refer to the exhibit.

The topology shown in the exhibit has the following characteristics:
* The Open Flow enabled switches are running in virtualization mode with member VLAN 10
* All the switches in the topology share the same VLANs.
* All the VLANs are tagged on all the links.
* Each OpenFlow domain is controlled by its own controller and is making independent decisions
* Every switch within the topology has PVST enabled only on VLAN 10
The networking team implementing OpenFlow reports that there are communication problems between the OpenFlow domains. What could be the cause of this communication problem?
A. A loop has been formed.
B. OpenFlow networks that communicate must use different VLANs.
C. This is an unsupported topology.
D. OpenFlow requires a dedicated out-of-band management network
Answer: C
Explanation:
Explanation/Reference:
Virtualization mode
With Virtualization Mode, some VLANs can be designated as members of OpenFlow instances.
Each OpenFlow instance is independent and has its own OpenFlow configuratio Note: OpenFlow can be configured for Virtualization Mode or Aggregation Mode.
* Virtualization Mode
Each OpenFlow instance is independent and has its own OpenFlow configuration and OpenFlow controller connection. Some VLANs are designated as members of OpenFlow instances while other VLANs are not.
The VLANs that are not members of OpenFlow instances could be thought of as VLANs carrying production traffic.
* Aggregation Mode
Provides a single OpenFlow instance that includes all of the VLANs configured on the switch except the VLAN(s) that connect to the controller(s) and the Management VLAN on the switch.
Production traffic is not allowed
Reference: HP OpenFlow Switches Administrator's Guide

NEW QUESTION: 2
Shirley Riley, CFA, has just been promoted, from vice president of trading to chief investment officer (CIO) at Crane & Associates, LLC (CA), a large investment management firm. Riley has been with CA for eight years, but she has much to learn as she assumes her new duties as CIO. Riley has decided to hire Denny Simpson, CFA, as the new compliance officer for CA, Riley and Simpson have been reviewing procedures and policies throughout the firm and have discovered several potential issues.
Communications with Clients
Portfolio managers are encouraged to communicate with clients on a regular basis. At a minimum, managers are expected to contact clients on a quarterly basis to review portfolio performance. Each client must have an investment policy statement (IPS) created when their account is opened, specifying the objectives and constraints for their portfolio. IPSs are reviewed at client request at any time. Any time market conditions dictate a change in the investment style or strategy of a client portfolio, the client is notified immediately by phone or email.
Employee Incentive Program
CA offers several incentive programs to employees. One of the most popular of these programs is the CA IPO program. Whenever CA is involved in an initial public offering (IPO), portfolio managers are allowed to participate. The structure is simple-for every 100 shares purchased on behalf of a client, the manager is awarded five shares for his own account. The manager is thus rewarded for getting an IPO sold and at the same time is able to share in the results of the IPO. Any¬time shares are remaining 72 hours before the IPO goes public, other employees are allowed to participate on a first-come, first-serve basis. Employees seem to appreciate this opportunity, but CA does not have exact numbers on employee participation in the program.
Private Equity Fund
CA has a private equity fund that is internally managed. This fund is made available only to clients with more than $5 million in assets managed by CA, a policy that is fully disclosed in CA's marketing materials.
Roughly one-third of the fund's assets are invested in companies that are either very small capitalization or thinly traded (or both). The pricing of these securities for monthly account statements is often difficult. CA support staff get information from different sources-sometimes using third party services, sometimes using CA valuation models. In some instances, a manager of the private equity fund will enter an order during the last trading hour of the month to purchase 100 shares of one of these small securities at a modest premium to the last trade price. If the trade gets executed, that price can then be used on the account statements. The small size of these trades does not significantly affect the fund's overall position in any particular company holding, which is typically several thousand shares.
Soft Dollar Usage
Several different managers at CA use independent research in developing investment ideas. One of the more popular research services among CA managers is "Beneath the Numbers (BTN)," which focuses on potential accounting abuses at prominent companies. This service often provides early warnings of problems with a stock, allowing CA managers the opportunity to sell their clients' positions before a negative surprise lowers the price. Stocks covered by BTN are typically widely held in CA client accounts.
Managers at CA have been so happy with BTN that they have also subscribed to a new research product provided by the same authors-"Beneath the Radar (BTR)." BTR recommends small capitalization securities that are not large enough to attract much attention from large institutional investors. The results of BTR's recommendations are mixed thus far, but CA managers are willing to be patient.
As they discuss these issues, Riley informs Simpson that she is determined to bring CA into full compliance with the CFA Institute's "Asset Manager Code of Professional Conduct." The following questions should be answered with the Asset Manager Code as a guide.
In discussing the pricing of thinly traded securities in the private equity fund, Riley suggested that CA should choose one pricing method and apply it consistently, thus avoiding the need to disclose specific pricing methods to clients. Simpson responded that using third party sources or internal valuation models was acceptable, so long as the pricing sources are fully disclosed to clients. Indicate whether Riley's comment or Simpson's response are correct or incorrect.
A. Riley's comment is not correct; however Simpson's response is correct.
B. Riley is correct, while Simpson is not correct.
C. Both Riley's comment and Simpson's response are correct.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Riley was incorrect. The pricing methodology should be disclosed to clients, whether one or multiple sources are used. Simpson was correct. Multiple sources are acceptable, so long as full disclosure is made. (Study Session 2, LOS 6.b)



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