John Sweeney is an investment advisor who is attempting to construct an "optimal portfolio" for a client who has $400,000 cash to invest. There are ten different investments, falling into four broad categories that John and his client have identified as potential candidates for this portfolio. The following table lists the investments and their important characteristics. Note that Unidyne equities (stocks) and Unidyne debt (bonds) are two separate investments, whereas First General REIT is a single investment that is considered both an equities and a real estate investment.
Expected Annual Liquidity Risk
Category Investment After-Tax Return Factor Factor
Equities Unidyne Corp. 15.0% 100 60
Col. Mustard Restaurant 17.0% 100 70
First General REIT 17.5% 100 75
Debt Metropolitan Electric 11.8% 95 20
Unidyne Corp. 12.2% 92 30
Lemonville Transit 12.0% 79 22
Real Estate Fairview Apartment Partnership 22.0% 0 50
First General REIT (see above) (see above) (see above)
Money T-Bill Account 9.6% 80 0
Money Market Fund 10.5% 100 10
All Savers Certificates 12.6% 0 0
Formulate and solve a linear program to accomplish John's objective as an investment advisor, which is to construct a
portfolio that maximizes his clients total expected after-tax return over the next year, subject to the following constraints
placed upon him by the client for the portfolio:
1. Its (weighted) average liquidity factor must be at least 65.
2. The (weighted) average risk factor must be no greater than 55.
3. At most, $60,000 is to be invested in Unidyne stocks or bonds.
4. No more than 40% of the investment can be in any one category except the money category.
5. No more than 20% of the investment can be in any one investment except the money market fund.
6. At least $1,000 must be invested in the money market fund.
7. The maximum investment in All Savers Certificates is $15,000.
8. The minimum investment desired for debt is $90,000.
9. At least $10,000 must be placed in a T-bill account.
Answers
John Sweeney is attempting to construct an "optimal portfolio" for a client who has $400,000 cash to invest. To accomplish this objective, we can formulate and solve a linear program.
The goal is to maximize the total expected after-tax return over the next year, subject to the following constraints:
1. Its (weighted) average liquidity factor must be at least 65.
2. The (weighted) average risk factor must be no greater than 55.
3. At most, $60,000 is to be invested in Unidyne stocks or bonds.
4. No more than 40% of the investment can be in any one category except the money category.
5. No more than 20% of the investment can be in any one investment except the money market fund.
6. At least $1,000 must be invested in the money market fund.
7. The maximum investment in All Savers Certificates is $15,000.
8. The minimum investment desired for debt is $90,000.
9. At least $10,000 must be placed in a T-bill account.
The linear program is expressed as:
Maximization:
Z = 15x1 + 17x2 + 17.5x3 + 11.8x4 + 12.2x5 + 12x6 + 22x7 + 9.6x8 + 10.5x9 + 12.6x10
Subject to:
1. x1 + x2 + x3 + x4 + x5 + x6 + x7 + x8 + x9 + x10 = 400,000
2. 100x1 + 100x2 + 100x3 + 95x4 + 92x5 + 79x6 + 0x7 + 80x8 + 100x9 + 0x10 ≥ 65(400,000)
3. 60x1 + 70x2 + 75x3 + 20x4 + 30x5 + 22x6 + 50x7 + 0x8 + 10x9 + 0x10 ≤ 55(400,000)
4. x1 + x5 ≤ 60000
5. x1 + x2 + x3 + x7 ≤ 160000
6. x1 + x2 + x3 + x4 + x5 + x6 + x7 ≤ 400000(40%)
7. x1 + x2 + x3 + x4 + x5 + x6 + x7 + x8 + x9 ≤ 40000 (20%)
8. x9 ≥ 1000
9. x10 ≤ 15000
10. x4 + x5 + x6 ≥ 90000
11. x8 ≥ 10000
By solving this linear program, John can construct an optimal portfolio that meets the constraints placed upon him by the client.
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Related Questions
Jonathan is a photographer. He has been hired by a company to shoot an advertisement for their product. Which role does Jonathan play in the advertising process for the product? Jonathan plays the role of a in the advertising process for the product.
Answers
Jonathan is a photographer. He has been hired by a company to shoot an advertisement for their product. Jonathan plays the role of a consultant in the advertising process for the product.
What is a consultant?Generally, A professional who, in addition to providing advice, engages in additional activities that serve a purpose related to their area of expertise is known as a consultant. As a kind of contingent labor, consulting services are often classified as falling within the umbrella of professional services.
Consultants, who are often known as management consultants, assist businesses in dealing with change and finding solutions to issues in order to make such businesses run more effectively and, as a result, more financially.
In order to assist their client organizations in becoming more successful in their commercial endeavors, consultants provide them with guidance and knowledge.
In conclusion, Since Jonathan was brought in from outside the organization to do a particular task, I would classify him as a contract employee, sometimes known as a consultant.
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CQ
Jonathan is a photographer. He has been hired by a company to shoot an advertisement for their product. Which role does Jonathan play in the advertising process for the product? Jonathan plays the role of a ____ in the advertising process for the product.
margaret is analyzing the current year income statement and the comparative balance sheet in order to prepare the statement of cash flows. she should expect the operating cash flows to be the amounts reported in the income statement.
Answers
Net income from the bottom of the income statement links to the balance sheet and cash flow statement.
An profits announcement or earnings and loss account is one of the financial statements of a company and shows the enterprise's revenues and charges in the course of a specific length. It shows how the sales are converted into net profits or net earnings.
An earnings announcement indicates a company's revenues, charges, and profitability over a period of time. it's also from time to time called an income-and-loss announcement or the announcement of a profit. It suggests your: sales from selling products or services. charges to generate revenue and manage your commercial enterprise.
The income declaration suggests a business enterprise's expenses, profits, profits, and losses, which can be put into a mathematical equation to arrive at the net earnings or loss for that time period. These statistics allow you're making well-timed choices to make certain that your commercial enterprise is on an excellent economic footing.
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Legislation defining the mission of the Federal Reserve states: "The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long-run growth of the monetary and credit aggregates commensurate with the economy's long-run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates." This is an example of a:
Answers
Answer:
Dual mandate.
Explanation:
A state legislature refers to the legislative body of each states of the federal government and are saddled with the responsibility of making or enacting laws. Thus, the state legislatures is one of the body of governance that has the power or authority to ratify (approve, confirm or give consent) a proposed amendment to the Constitution by getting three-quarter of the states to vote in support.
All states have a bicameral legislature which typically comprises of the upper chamber (Senate) and the lower chamber (House of Representatives).
Dual mandate can be defined as the functions or responsibilities that are accorded to a governmental institution by the legislature.
after the second world war, why did american planners seek a world economy based on free trade and the quick reconstruction of germany, japan, and other nations?
Answers
American planners sought a world economy based on free trade and the quick reconstruction of Germany, Japan, and other nations after the Second World War for several reasons.
Firstly, they believed that free trade would lead to increased economic growth and stability, as it would allow for greater international cooperation and specialization in production. Secondly, they recognized that the reconstruction of war-torn nations was essential for global stability and preventing the rise of new conflicts.
Finally, they saw the reconstruction of Germany and Japan as an opportunity to create strong allies and promote democracy and capitalism in these nations, which they hoped would contribute to the overall spread of these ideals throughout the world.
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Question 1 of 10 If you make a plan to get a certain amount of a project done each day, what skill have you demonstrated? A. Time management B. Punctuality O C. Moral standards D. Integrity
Answers
Answer: A
Explanation: not sure, but i think its correct
Where do you get a check register
Answers
Answer: How to Obtain a Check Register. If you didn’t receive a check register with your checkbooks and would like one, you have several options: Use a template such as a free Go_ogle Docs check register. Order a new register from an online check printer or your bank. Grab a check register from the back of an old checkbook or anywhere you can find one.
When commercial banks need more Federal Reserve Notes, Question 16 options: they call the Bureau of Engraving and Printing, which delivers the requested amount. they call the Board of Governors of the Fed, which delivers the requested amount. they ask their customers to exchange their Federal Reserve Notes for U.S. Treasury securities. they call the Treasury, which delivers the requested amount. they call their Federal Reserve District Bank, which delivers the requested amount.
Answers
Answer:
they call their Federal Reserve District Bank, which delivers the requested amount.
Explanation:
The Federal Reserve System (popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America, which are commonly referred to as Federal Reserve District Bank.
The Fed provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
Hence, when commercial banks such as the regular banks in societies need more Federal Reserve Notes, they call their Federal Reserve District Bank to deliver the requested amount to them.
Additionally, currency in circulation includes all of the US paper currency (dollar bill) that are available in the country while reserves refers to the minimum deposits being held for the U.S Treasury and depository financial institutions by the Fed.
Which of the following is not a life role category?
O Risk Taker
O Worker
O Family Member
O Learner
Answers
Risk Taker is not a life role category.
A life role is a set of expectations, behaviors and attitudes that a society assigns to a person based on their gender, age, social status, race or other factors. For example, in many cultures women are expected to be loving, nurturing and care-givers, while men are expected to be strong, provider-types.
Life roles help to define how we see ourselves and how we are seen by others. They can be a source of satisfaction and fulfilment, but they can also be a source of stress and frustration if they do not fit with our own personal aspirations and identity.
Hence, the correct option is "First".
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A major drugstore chain whose stocks are traded on the New York Stock Exchange was considering a 2-for 5 reverse split. If the pre-split market cap was 1.71B, what would the post-split market cap be?
Answers
A major drugstore chain whose stocks are traded on the New York Stock Exchange was considering a 2-for 5 reverse split. the post-split market cap be 684 million
What is market cap?Generally, In a 2-for-5 reverse split, every 5 shares of stock are combined into 2 shares. This means that the number of outstanding shares of stock will be reduced by 2.5 times. If the pre-split market cap is 1.71B, the post-split market cap can be calculated by dividing the pre-split market cap by 2.5:
1.71B / 2.5 = 684 million
So, the post-split market cap would be approximately 684 million. Please note that this calculation is based on the assumption that the value of the company's stock remains the same after the reverse split. In practice, the value of the stock may change as a result of the reverse split.
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During a merger, when company buys another, who should be the beneficiaries of the money paid for the acquired company?
Answers
Answer:
Concessions are usually made during merger negotiations, Merger securities are non-cash assets paid to the shareholders of a corporation that is being acquired by or merged with another company.nation:
the united states caused an economic crisis in cuba by
Answers
The united states caused an economic crisis in Cuba by passing a tariff on sugar which is the major export sector and also one of the major sources of economy.
United States of America imposed a heavy tax on Cuban sugar which affected the sugar industry in Cuba. The sugar production firms faced a lot of downfall issues. This made Cuba find alternative markets and crush the financial crisis within no time to adjust their trade strategies.
The economic crisis in Cuba is caused by various other factors like domestic policies, and bad international relations. This crisis was also caused due to lack of centralized planning, improper geopolitical dynamics and not showing interest by foreign investors.
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An extremely rainy spring and summer may impact growing crops. This is an example of what type of risk
Answers
Answer:
Environmental risk
Explanation:
In simple words, The environmental risk of farming refers to the affect that various agricultural activities have on the environments in which they operate, as well as how those impacts can be linked to those practices. Agriculture's ecological influence varies greatly depending on the activities used by growers as well as the size at which they operate.
What did Alexander Hamilton want for the economy?
Answers
Hamilton advocated for a federal charter for a national financial institution as part of his plan to restructure the American economy. A Bank of the United States was his suggestion.
What was the economic objective of Alexander Hamilton?In Hamilton's proposal, the federal and state debts would be paid off by the government. He demanded that the government acquire all of the bonds issued before 1789 by the federal and state governments. Then, he intended to issue fresh bonds to settle the previous debts.
What three points made up Hamilton's economic strategy?The elements of Hamilton's particular financial strategy were: government obligations incurred during the war. financing for the government's operations. Concentrate on business and industry
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The average life for an SBA-guaranteed business loan is ____ years. A) twenty-five. B) eighteen. C) fifteen. D) twelve. E) eight.
Answers
The average life for an SBA-guaranteed business loan is 25 years.
Participating lenders can offer SBA-guaranteed loans that are supported by the Small Business Administration (SBA) to lower their risk. The loans may be utilized for a number of things, such as working capital, the acquisition of equipment, real estate, and the refinancing of current debt.
The loan duration might vary based on the particular loan program and how the money will be used, but an SBA-guaranteed business loan typically has a 25-year term. Nevertheless, depending on the requirements and credentials of the borrower, certain loans may have longer or shorter maturities. Business owners should carefully weigh their financing alternatives and consult an experienced lender to select the loan that best suits their requirements.
Option A is the correct answer.
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Your credit score is not associated with:
A. securing a home loan.
B. getting approved to rent an apartment.
C. being hired by a hiring manager.
D. an increase in salary.
Answers
Your credit score is not associated with:D. an increase in salary.
What is credit score?A credit score can bne described as the numerical expression which is been done conwidering some level analysis of a person's credit files which help to know more about the person.
It should be noted that this help to know the creditworthiness of an individual and it help to know aboput te financial capacity of a person, it can be a determinant when one is trying to secure a loan for home as well as when one is trying to rent something on credit.
Therefore, option D is correct.
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Management, can anyone help me?
Answers
I think it is C I looked up some stuff and they all add up to C
plan cost management is the process of defining how the project costs will be _____, budgeted, managed, monitored, and controlled
Answers
Plan cost management is the process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled.
During this process, a comprehensive strategy is developed to effectively handle the financial aspects of a project. It involves determining the methods and techniques to be used for estimating costs, establishing a project budget, outlining cost management procedures, and defining roles and responsibilities for cost management activities. The plan also includes strategies for monitoring and controlling costs throughout the project lifecycle, such as implementing cost tracking mechanisms, conducting variance analysis, and taking corrective actions when deviations from the budget occur. By properly planning cost management, project stakeholders can ensure that financial resources are utilized efficiently, risks associated with cost overruns are mitigated, and the project remains within the allocated budget.
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80-85% of the world's natural vanilla is supplied by Madagascar, an island nation off the coast of Africa. Linda read a recent article online in one of the main ingredients for the ice cream that she and Cathal will produce in 'Sligo Scoops'. (i) What effect will a shortage of vanilla have on each of the following:
The price of vanilla:
Answers
Answer:
Climate change, crime and speculation mean the price of the fragrant spice has skyrocketed from $20 a kilo five years ago to $515 now.
Which demographic groups does Women in Motion serve?(keep it clear and short)
Answers
The demographic group Women in Motion serve is Women who are all talented and Young giving in their best contribution to Cinema.
What is demographic?
Demographic is referred to defining a set of populations based on the characteristics like age, gender, social status, education, qualification, and so on.
"Women in Motion" has referred to a kind of award which was given to effective young female personalities who are raising the position of women in society and providing a contribution to their growth.
The event has emerged as a go-to platform for starting discussions and influencing perceptions around the representation of women in the arts and entertainment industries.
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What do you call a website or e-mail address that is created to look like it comes
from a legitimate source? Choose the answer.
pharming
spoofing
spyware
none of the above
Answers
Answer:
this would be called spoofing.
Spoofing is called as a website or e-mail address that is created to look like it comes from a legitimate source.
What is legitimate source?
Legitimate source is defined as according to the law, something that is legal is acceptable.
It can also be defined as the electoral register is a genuine source of information that is currently available to the public.
A reputable source is defined as the one that has been written by an expert in their field and is free of errors and bias.
A trustworthy source is defined as the one that offers a detailed, well-reasoned idea, argument, or discussion based on solid evidence.
Thus, spoofing is called as a website or e-mail address that is created to look like it comes from a legitimate source.
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Which are direct employers for people working in the architecture and construction career pathway? check all that apply.
Answers
The state government, the federal government, the local government, and a private enterprise are the direct employers of persons who follow a career path in architecture and construction.
What is Architecture and construction pathways?
A structure's development, construction, and maintenance, whether it be a skyscraper or a motorway, are all handled by the complex cluster of subjects known as architecture and construction. Designing a complete neighborhood and installing security and fire alarms in individual buildings are both jobs in this sector. This field includes the planning and construction of structures as well as the maintenance of machinery that, once installed, becomes an essential component of the building.
Examples- of such machinery include plumbing, heating, central air conditioning, electrical wiring, lighting equipment, elevators, and escalators.
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People who pursue a career in design and construction work for the state government, the federal government, the local authority, and a private business.
What is the construction pathways for architecture?Architecture and construction is a broad field of study that is concerned with the design, building, and maintenance of various kinds of structures, including skyscrapers and highways. Jobs in this industry include planning an entire neighborhood and setting up security and fire alarms in specific structures. This profession involves both the design and building of structures as well as the upkeep of equipment that, once installed, forms a crucial part of the building.Piping, heating, air conditioning, electrical wiring, special lighting, elevators, and escalators are a few examples of this type of machinery.
Complete question:Which are direct employers for people working in the architecture and construction career pathway? check all that apply:the state government,the federal government,the local government,a private company
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T/F. Under a shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination.
Answers
The seller may resell the items and make the buyer responsible for any losses if a buyer breaches a contract while the seller is still in possession of the goods.
When a sales contract mentions shipping the items but leaves the arrangements up to the parties, who is responsible for making those arrangements?If a sales agreement mentions shipping of the items but does not detail how, either party is free to make those arrangements. Sales contracts are governed by the common law of contracts, to the extent that it has not been altered by the UCC.
When the products are dispatched, the customer receives the blank title.A contract known as a "shipment contract" releases the seller from responsibility for the products once they have been delivered to the carrier and I mandates that the seller ship the buyer via carrier. Once the items are delivered to the transporter, ownership transfers to the buyer.
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What process group does the project integration management knowledge area map to through the activities of developing project charters
Answers
The process in the project integration management knowledge illustrated is initiating.
What is project integration?It should be noted that project integration simply means the coordination of all the elements that are in a project.
The process group that the project integration management knowledge area map to through the activities of developing project charters is the initiating group.
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The United States economy is considered by the Institute for Management Development to be the most competitive economy because:________
a. of widespread entrepreneurship.
b. of selected restrictions on imports from Japan and Europe.
c. Americans are willing to work harder than anyone else is.
d. of a high saving rate.
Answers
Answer:
a. of widespread entrepreneurship.
Explanation:
According to the Institute for Management Development, a business education school that is situated in Lausanne, Switzerland. In its annual rankings on the performance of 63 economies across the globe. In 2018 rated the United States of America as the topmost economy in competitiveness. Based on various data gathered and surveyed, the education school cited "widespread entrepreneurship" as the major reason behind it.
a client has changed the salvage values of a number of its fixed assets. the auditors of the public company believe that the revised salvage values are realistic. the appropriate report on the financial statements is: multiple choice unqualified with explanatory language as to consistency. disclaimer. qualified for consistency. standard unqualified.
Answers
The appropriate report on the financial statements when a client has changed the salvage values of a number of its fixed assets and the auditors of the public company believe that the revised salvage values are realistic is an unqualified report with explanatory language as to consistency.
An unqualified report means that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the company in accordance with generally accepted accounting principles (GAAP). In this case, the auditors have determined that the revised salvage values are realistic, which means that the financial statements are not materially misstated. Therefore, an unqualified report is appropriate.However, the auditors need to provide explanatory language as to consistency because the client has changed the salvage values of its fixed assets. The consistency principle in accounting requires that a company use the same accounting methods and principles from year to year unless there is a valid reason for changing them. Changing the salvage values of fixed assets is a change in accounting estimate, which requires disclosure in the financial statements.Therefore, the appropriate report on the financial statements is an unqualified report with explanatory language as to consistency. The auditors need to disclose the change in salvage values as a change in accounting estimate and explain why the change was made. This will ensure that the users of the financial statements understand the impact of the change on the financial results of the company and can make informed decisions based on the information provided.
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The Federal Reserve purchases large amounts of treasury securities in order
to:
A. slow down a period of rapid economic growth.
B. enforce regulations on its member banks.
C. increase the available money supply.
D. stop banks from lending too much money.
SUBMI
Answers
Answer: C. increase the available money supply
Explanation:
The supply of money is the total amount of money that a particular economy has at a particular point in time.
The Federal Reserve purchasing large amounts of treasury securities is an expansionary policy which means that it's a policy that is used to increase the money that's available in the economy.
When the government buys securities, it leads to more money on circulation. Likewise, if the federal government wants to reduce money supply, it sells securities to the people.
Therefore, the correct option is C.
C. increase the available money supply
Explanation:
The supply of money is the total amount of money that a particular economy has at a particular point in time.
who does the term public refer to when used in accountancy
Answers
In the process of brainstorming his goals, Robert realized his Web business was more about money than creativity. His decision to include a minimum monthly income of $5,000 as part of his missions statement is an example of
A. gratifying investors
B. a values statement
C. a specific, measurable goal
D. compromising principles
Answers
Think of a favorite product that you have. What do you think ALL of the things are that have to happen before you see the product in the store?
Answers
The transformation of raw materials into finished goods. Natural items are transformed into goods that can be sold on the market through manufacturing.
What are the initial steps ?The acquisition and monitoring of raw materials is the initial step in inventory management. The environment can be mined for raw materials or they can be purchased from sources. Once received, raw materials must be kept in storage until they are needed for manufacturing. Systems of inventory keep track of the quantity, location, and state of each raw item.
Work in process refers to the production process from storage to the assembly line. Production might be carried out internally or contracted out to manufacturers. Inventory management systems monitor the production process and the finished goods as they are produced in both scenarios.
The number, location, and state of each end product must be monitored. The system is updated in response to product purchases to account for the drop in inventory following distribution.
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When conducting performance appraisals, Steve, an Operations Manager at Pucoy Inc., provides his team members with feedback about their work and discusses areas of improvement for their future growth in the company. In this scenario, Steve demonstrates a(n) _____ use of performance appraisal.
Answers
The manager at Pucoy Inc. Steve is performing appraisal for the employees, he is performing appraisal using the development trait of the performance appraisal.
What is Appraisal?Appraisal is the process of reviewing an employee's performance, this is usually conducted on a semi annual or annual period. The performance appraisal is usually conducted by the line manager and or a HR representative.
Steve is showing good qualities as he is appraising the employees, He is also providing feedback on the area of improvement and also discussing the future growth options and strategies for the employee in the organization. This trait is a development use of performance appraisal.
Performance appraisals are an important part in an organization as it encourages the employees to work hard and effective. The annual salary increments are also based on this performance appraisals.
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