內(nèi)容cfa一級(jí)-歷年mock

Youhave180minutestocompletethisCarlosCruz,CFA,isoneoftwofoundersofanequityhedgefund.Cruzmanagesthefund'sassets,andtheotherco-founder,BrianBurkeman,CFA,isresponsibleforfundsalesandmarketing.CruznoticesthemostrecentsalesmaterialusedbyBurkemanindicatesassetsundermanagementarelistedatahighervaluethanthecurrentmarketvalue.Burkemanjustifiesthediscrepancybystatingrecentmarketdeclinesaccountforthedifference.TocomplywiththeCFAInstituteStandardsofProfessionalConduct,Cruzshouldleastlikelytakewhichofthefollowingactions?Providea erinmarketingmaterialsindicatingpricesareasofaspecificChristinaNg,aLevelICFAcandidate,defaultedonabankloansheobtainedtopayforhermaster'sdegreetuitionwhenherweddingcostmorethanexpected.Amicrofinanceloancompanylenthermoneytopayoffthetuitionloaninfull,includingpenaltiesandinterest.Themicrofinanceloancompanyevenextendedfurthercredittopayforherparents'outstandingmedicalbills.Unfortuna herparents'healthproblemsescalatedtothepointthatNghadtotakeextensivetimeawayfromworktodealwiththeissues.Shewassubsequentlyfiredandconsequentlydefaultedonthesecondloan.Becauseshewasnolongeremployed,Ngdecidedtofilefor albankruptcy.DotheloandefaultsleadinguptoNg'sbankruptcymostlikelyviolateStandardI(D):Misconduct?Yes,withregardto loanYes,withregardtothesecondloanKimKlausner,CFA,monitorsseveralhundredemployeesasheadofcomplianceforalargeinvestmentadvisoryfirm.Klausnerhasalwaysensuredthathiscompany'scomplianceprogrammetorexceededthoseofitscompetitors.Klausner,whoisgoingonalongvacation,hasdelegatedhissupervisoryresponsibilitiestoSueChang.KlausnerinformsChangthatherresponsibilitiesincludedetectingandpreventingviolationsofanycapitalmarketrulesandregulationsandtheCFAInstituteStandardsofProfessionalConduct.KlausnerleastlikelyviolatedtheCFAInstituteStandardsofProfessionalConductbyfailingtoinstructChangtoalsoconsider:firmWhenaclientasksherhowshemakesinvestmentdecisions,PetraVogler,CFA, lstheclientsheusesmosaictheory.AccordingtoVogler,thetheoryinvolves yzingpublicandnonmaterialnonpublicinformation,includingtheevaluationofstatementsmadetoherbycompanyinsidersinone-on-onemeetingsinwhianagementdiscussesnewearningsprojectionsnotknowntothepublic.Vogleralsogathersgeneralindustryinformationfromindustryexpertsshehascontacted.VoglermostlikelyviolatestheCFAInstituteStandardsofProfessionalConductbecauseofheruseBaileyWatson,CFA,manages25emergingmarketpensionfunds.Herecentlyhadtheopportunitytobuy100,000sharesinapubliclylistedcompanywhoseprospectsareconsidered"aboveindustrynorm"bymostysts.Thecompany'ssharesrarelytradebecausemostmanagersuseabuy-and-holdstrategybecauseofthecompany'ssmallfreefloat.Beforeplacingtheorderwithhisdealer,Watsonallocatedthesharestobepurchasedaccordingtotheweightedvalueofeachofhisclients'portfolios.Whenitcametimetoexecutethetrades,thedealerwasabletopurchaseonly50,000shares.TopreventviolatingStandardIII(B):FairDealing,itwouldbemostappropriateforWatsontoreallocatethe50,000sharespurchasedby:distributingthemequallyamongallthepensionfundallocatingrandomlybutgivingfundsleftoutpriorityonthenextsimilartypeLinLiang,CFA,isaninvestmentmanagerandanautoindustryexpert.Lastmonth,LiangsentsecuritiesregulatorsananonymousletteroutliningvariousaccountingirregularitiesatRoadRubberCompany.Shortlybeforehesentthelettertotheregulators,LiangshortedRoadstockforhisclients.Oncetheregulatorsopenedaninvestigation,whichLianglearnedaboutfromhissourcesinsidethecompany,Liangleakedthisinformationtomultiplesourcesinthemedia.Whennewsoftheinvestigationbecamepublic,thesharepriceofRoadimmedia ydropped30%.Liangthencoveredtheshortpositionsandmade$5pershareforhisclients.LiangleastlikelyviolatedwhichoftheCFAInstituteStandardsofProfessionalConduct?PriorityofMarketJenniferDucumon,CFA,isaportfoliomanagerforhigh-net-worthindividualsatNortheastInvestmentBank.NortheastholdsalargenumberofsharesinBabySkinCareInc.,amanufacturerofbabycareproducts.NortheastobtainedtheBabySkinCareshareswhenitunderwrotethecompany'srecentIPO.DucumonhasbeenaskedbytheinvestmentbankingdepartmenttomendBabySkinCaretoherclients,whocurrentlydonotholdanysharesofBabySkinCareintheirportfolios.AlthoughDucumonhasafavorableopinionofBabySkinCare,shedoesnotconsiderthesharesabuyattheIPOpriceoratcurrentpricelevels.AccordingtotheCFAInstituteStandardsofProfessionalConduct,themostappropriateactionforDucumonisto:ignorethefollowtherequestassoonasthesharepriceRodneyRodrigues,CFA,isresponsibleforidentifyingprofessionalstomanagespecificassetclassesforhisfirm.Inselectingexternaladvisersorsubadvisers,Rodriguesreviewstheadviser'sinvestmentprocess,establishedcodeofethics,thequalityofthepublishedreturninformation,andthecomplianceandintegratedcontrolframeworkoftheanization.Incompletinghisreview,RodriguesmostlikelyviolatedtheCFAInstituteStandardsofProfessionalConductwithregardtohisduediligenceon:performanceSolomonSulzberg,CFA,isaresearch ystatBlueWaterManagement.Sulzberg'smendationstypicallygothroughanumberofinternalreviewsbeforetheyarepublished.Indevelohis mendations,Sulzbergusesamodeldevelopedbyatative ystwithinthefirm.Sulzbergmadesomeminorchangestothemodelbutretainedtheprimaryframework.Inhisreports,Sulzbergattributesthemodeltoboththetative ystandhimself.Beforetheinternalreviewsofhisreportsarecompleted,Sulzbergbuyssharesinoneofthecompanies.Aftertheinternalreviewiscomplete,hefailsto mendthepurchaseofthestocktohisclientsanderasesallofhisresearchrelatedtothiscompany.SulzbergleastlikelyviolatedtheCFAInstituteStandardsofProfessionalConductrelatedto:PriorityofJacksonBarnes,CFA,worksforaninsurancecompanyprovidingfinancialplanningservicestoclientsforafee.Barneshasdevelopedanetworkofspecialists—includingaccountants,lawyers,andbrokers—whocontributetheirexpertisetothefinancialplanningprocess.Eachofthespecialistsisanindependentcontractor.EachcontractorbillsBarnesseparayfortheworkheorsheperforms,providingadiscountbasedonthenumberofclientsBarneshasreferred.WhatstepsshouldBarnestaketobeconsistentwiththeCFAInstituteStandardsofProfessionalConduct?InformpotentialclientsabouthisarrangementwiththecontractorsbeforetheyagreetohireListtheconsiderationhereceivesfromthespecialistsonmonthlyclientOnaflighttoEurope,RomyHaas,CFA,strikesupaconversationwithafello ssenger,VincentTrujillo.WhenTrujillolearnsHaasisintheinvestmentprofession,heasksabouttheCFAdesignation.Haas lshimthefollowingabouttheCFAdesignation:Statement1:IndividualswhohavecompletedtheCFAProgramhavetherighttousetheCFAStatement2:TheCFAdesignationisgloballyrecognized,whichiswhyitcanbeusedaspartofafirm'sname.Statement3:CFAcharterholdersmustsatisfymembershiprequirementstocontinueusingtheWouterDuyck,CFA,isthesoleproprietorofaninvestmentadvisoryfirmservingseveralhundredmiddle-classretailclients.Duyckclaimstobedifferentfromhiscompetitorsbecauseheconductsresearchhimself.Hedisclosesthattosimplifythemanagementofalltheseaccounts,hehascreateda mendedlistofstocksfromwhichheselectsinvestmentsforallofhisclientsbasedontheirsuitability.Duyck's mendedlistofstocksisobtainedfromhisprimarybroker,whohascompletedduediligenceoneachstock.Duyck's mendedlistleastlikelyviolateswhichofthefollowingCFAInstituteStandardsofProfessionalConduct?FairAbdulNaib,CFA,wasrecentlyaskedbyhisemployertosubmitanupdated providingthehistoryofhisemploymentandqualifications.Theexisting onfilewassubmittedwhenhewashiredfiveyearsago.HisemployernoticestheupdatedversionshowsNaibobtainedhisMBAtwoyearsago,whereastheearlierversionindicatedhehadalreadyobtainedhisMBAatthetimeofhishire.BecausethepositionNaibwashiredforhadaminimumqualificationofanMBA,Naibisaskedtoexplainthediscrepancy.Hejustifieshisactionsbystating:"IknewyouwouldnothiremeifIdidnothaveanMBA,butIalreadyhadmyCFAdesignation.KnowingyourequiredanMBA,Iwentbacktoschoolonapart-timebasisafterIwashiredtoobtainit.Igraduatedatthetopofmyclass,butthisshouldnotcomeasanysurprisebecauseyouhaveseenevidenceIpassedallofmyCFAexamsonthe attempt."DidNaibmostlikelyviolatetheCFAInstituteStandardsofProfessionalYes,withregardtoYes,withregardtoReferencetotheCFATonyaTucker,CFA,isafinancial ystatBowronConsolidated.Bowronhasnumeroussubsidiariesandisactivelyinvolvedinmergersandacquisitionstoexpanditsbusinesses.Tuckeryzesanumberofcompanies,includingHanchinCorporation.WhenTuckerspeakswiththeCEOofBowron,sheindicatesmanyofthecompaniesshehaslookedatwouldbeattractiveacquisitionsforBowron.AfterherdiscussionwiththeCEO,Tuckerpurchases100,000sharesofHanchinCorporationat$200pershare.Bowrondoesnothaveanypre-clearanceprocedures,sothenexttimeshemeetswiththeCEO,TuckermentionssheownssharesofHanchin.TheCEOthanksherforthisinformationbutdoesnotaskforanydetails.Twoweekslater,Tuckerseesa fromtheCEOannouncingBowron'sacquisitionofHanchinfor$250ashare.InregardtoherpurchaseofHanchinstock,TuckerleastlikelyviolatedtheCFAInstituteStandardsofProfessionalConductconcerning:PriorityofKellyAmadon,CFA,aninvestmentadviser,hastwoclients:RyanRandolf,65yearsold,andKeikoKitagawa,45yearsold.Bothclientsearnthesameamountinsalary.Randolf,however,hasalargeamountofassets,whereasKitagawahasfewassetsoutsideherinvestmentportfolio.Randolfissingleandwillingtoinvestaportionofhisassetsveryaggressively;Kitagawawantstoachieveasteadyrateofreturnwithlowvolatilitysoshecanpayforherchild'scurrentcollegeexpenses. mendsinvesting20%ofbothclients'portfoliosinthestockofverylow-yieldingsmall-capcompanies.AmadonleastlikelyviolatedtheCFAInstituteStandardsofProfessionalConductinregardtohisinvestment mendationsfor:DanielleDeschutes,CFA,isaportfoliomanagerwhoispartofa10- teamthatmanagesequityportfoliosforinstitutionalclients.Acompetingfirm,SouthWestManagers,asksDeschutestointerviewforapositionwithitsfirmandtobringherperformancehistorytotheinterview.Deschutesreceiveswrittenpermissionfromhercurrentemployertobringtheperformancehistoryofthestockportfoliowithher.Attheinterview,shedisclosesthattheperformancenumbersrepresenttheworkofherteamanddescribestheroleofea ember.TobolsterhercredibilityDeschutesalsoprovidesthenamesofinstitutionalclientsandrelatedassetsconstitutingtheportfolio.Duringherinterview,DeschutesmostlikelyviolatedtheCFAInstituteStandardsofProfessionalConductwithregardto:hercontributiontotheportfolio'sCharlesMbuwanga,aLevelIIICFAcandidate,isthebusinessdevelopmentmanagerforSokozaInvestmentGroup,aninvestmentmanagementfirmwithhigh-net-worthretailclientsthroughoutAfrica.SokozaintroducedlistedKenyanREITs(realestateinvestmenttrusts)toitslineofinvestmentproductsbasedonnewregulationsintroducedinKenyatodiversifyitsproductofferingtoclients.TheproductintroductioncomesaftermonthsofresearchingKenyanpropertycorrelationswithotherpropertymarketsandassetclassesinAfrica.SokozaassignsMbuwangaaspartofthe thatwillintroducethisproducttoitsclientsacrossAfrica.MbuwangasubsequentlydeterminesmostofSokoza'sclients'portfolioswouldbenefitfromhavingasmallKenyanpropertyexposuretohelpdiversifytheirinvestmentportfolios.BypromotingtheKenyanREITsforSokoza'sclientportfoliosasplanned,Mbuwangawouldleastlikelyviolatewhichofthefollowingstandards?KnowledgeoftheSheilaSchleif,CFA,isanequity ystataninvestmentbankingdivisionofMokaraFinancialGroup,afullservicefinancialgroup.SchleifusesamultifactorcomputermodeltomakestockmendationsforallclientsofMokara.Schleifdiscoversthemodelcontainsanerror.Iftheerrorwerecorrected,hermostrecentbuy mendationcommunicatedtoallclientswouldchangetoasell.Schleifcorrectstheerror,changingthebuytoasell mendation,andthensimultaneouslydistributesviatherevisiontoallinvestmentbankingclientswhoreceivedtheinitialmendation.Aweeklater,SchleifsellsthesamesharessheheldinheralConcerningheractions,SchleifmostlikelyviolatedwhichofthefollowingCFAInstituteStandardsofProfessionalConduct?PriorityofFairAfirm’sestimatedcostsofdebt,preferredstock,andcommonstockare12%,17%,and20%,respectively.Assumingequalfundingfromeachsourceandamarginaltaxrateof40%,theweightedaveragecostofcapital(WAAC)isclosestto:ThefollowinginformationisavailableforaNumberofshares4TaxCostofdebt(pre-Currentstock $6Aplantorepurchase$10millionworthofsharesusingdebtwillmostlikelycausetheearningspershareWhichofthefollowingismostlikelyasignofagood ernanceThechiefexecutivepositionisseparatefromthechairpositiononthecompany’sIndependentboardmembersareallowedtomeetshareholdersonlyinthepresenceoftheentireA20-year$1,000fixed-ratenon-callablebondwith8%annualcouponscurrentlysellsfor$1,105.94.Assuminga30%marginaltaxrateandanadditionalriskpremiumforequityrelativetodebtof5%,thecostofequityusingthebond-yield-plus-risk-premiumapproachisclosestto:Acompany’soptimalcapitalbudgetmostlikelyoccursattheintersectionofmarginalcostofcapitalandnetpresentvaluenetpresentvalueandinternalrateofreturnWhencomputingtheweightedaveragecostofcapital(WACC)andassumingafixed-ratenon-callablebondiscurrentlysellingaboveparvalue,thebefore-taxcostofdebtisclosesttothe:currentyieldtoAprojecthasthefollowingannualcashYearYearYearYearYearWithadiscountrateof8%,thediscountedpaybackperiod(inyears)isclosestWhichdateinthechronologyofadividendpaymentismostlikelydeterminedbyasecurityHolder-of-recordWhencomputingthecashflowsforacapitalproject,whichofthefollowingisleastlikelytobeOpportunityTaxTheannualcostoftradecreditassumiga365-dayyearforterms3/10net40isclosestWhichofthefollowingmeasuresofprofitismostlikelynecessaryforafirmtostayinbusinessinthelongrun?Acountry'sinternationaltransactionsaccountsdataforlastyeararepresentedinitsdomesticExportsofgoodsandImportofgoodsand epaymentsmadeto ereceivedfromNetchangeinassetsownedThecurrentaccountbalanceisclosestWhichofthefollowingwillmostlikelycausetheshort-runaggregatesupply( )curvetoshifttotheright?IncreaseinthesupplyofhumanIncreaseinnominalThetwodominantsupermarketchainsintheareaareattemptingtoincreasetheirmarketsharebymovingto24-hourserviceinsteadofclosingat9p.m.everynight.Thestrategic esandpayoffmatrixthatarisefromtheiractionsaredepictedinthediagram(withtheshadedsectionsrepresentingpayoffsforChain2).AccordingtoNashequilibrium,thebeststrategyisbothchainstoopenfor24bothchainstocloseat9onlyChain2toopenfor24Inordertoreduceatradedeficit,the ernmentofacountryexperiencingfullemploymentmovestodepreciateitscurrency.Asaresult,ifthecountry'sdomesticspendingdeclinesrelativeto themostlikelymechanismthatcausesthistooccuristhe:eANewZealandtravelerreturnedfromSingaporewithSGD7,500(Singaporedollars).Aforeignexchangedealerprovidedthetravelerwiththefollowingquotes:SpotUSD:USNZD:NewZealandTheamountofNewZealanddollars(NZD)thatthetravelerwouldreceiveforhisSingaporedollarsclosestDemandforagoodismostlikelytobemoreelasticalesserproportion eisspentonthetheadjustmenttoapricechangetakesalongerthegoodisaWhichcharacteristicisafirmleastlikelytoexhibitwhenitoperatesinamarketwithadownwardslodemandcurve,manycompetitors,andzeroeconomicprofitsinthelongrun?LowbarrierstoNopricingWhichofthefollowingismostlikelytocauseashifttotherightintheaggregatedemandIncreaseinDecreaseinrealestateBoominthestockAlocallaundryanddrycleanercollectsthefollowingdataonitsworkforceproductivity.Workersalwaysworkinteamsoftwo,andthelaundryanddrycleanerearns$3.00ofrevenueforeachshirttyofLabor(L)TotalProduct002468Themarginalrevenueproduct(MRP,$perworker)forhiringthefifthandsixthworkersisclosestHoldingtheworking-agepopulationconstant,ifthelaborforceparticipationratedeclineswhilethenumberofpeopleemployedremainsunchanged,theunemploymentratewillmostlikely:Intheshortrun,afirmoperatingin rfectlycompetitivemarketwillmostlikelyavoidshutdownifitisabletoearnsufficientrevenuetocoverwhichofthefollowingcosts? ystusesastockscreenerandselectsthefollowingmetricsfromhisequityprice-to-bookvalueratiolowerthanthemedianThestocksselectedwouldbemostappropriateforportfoliosforwhichtypeofGrowthMarket-orientedAcompanyusingIFRSreportsitsinterestpaymentsonlong-termdebtasafinancingactivity.IfthecompanyreportedunderUSGAAP,themostlikelyeffectwouldbea:highercashflowfromlowercashflowfrominvestinghighercashflowfromfinancingAtthestartoftheyear,acompany'scapitalcontributedbyownersandretainedearningsaccountshadbalancesof$10,000and$6,000,respectively.Duringtheyear,thefollowingeventstookplace: eInterestpaidonRepaymentoflong-termProceedsfromshares-of-yearowners'equityisclosestAcompanyusesthe pletionmethodtorecognizerevenuefromitslong-termconstructioncontractsandestimatespercentcompletionbasedonexpendituresincurredasapercentageoftotalestimatedexpenditures.Athree-yearcontractfor€10millionwasundertakenwitha30%grossprofitmarginanticipated.Theprojectisnowat ofitssecondyear,andthefollowingend-of-yearinformationisavailable:YearYearCostsincurredduringThegrossprofitrecognizedinYear2isclosestAnincreaseinwhichofthefollowingratioswouldmostlikelyresultinanincreaseinoperatingcashDaysofsalesQuickNumberofdaysof€RevenuesfortheTotalexpensesfortheLossonforeigncurrencytranslationadjustmentsonaforeignThecompany'stotal e(in€millions)isclosestWhichofthefollowingstatementsmostaccura ydescribesavaluationallowancefordeferredtaxes?Avaluationallowanceisrequiredunder:bothIFRSandUSGAAPondeferredtaxassetsarisingfromthetranslationofforeignUSGAAPifthereisdoubtaboutrecoveringadeferredtaxIFRSonrevaluationofadeferredtax€ 0NetTaxThefreecashflowtothefirm(FCFF)isclosestTheyticaltoolthatwouldbemostappropriateforanysttousetoidentifythepercentageofacompany'sassetsthatareliquidisthe:currentcashAcompanyhasannouncedthatitisgoingtodistributeagroupoflong-livedassetstoitsownersinaspin-off.Themostappropriatewaytoaccountfortheassetsuntilthedistributionoccursistoclassifythemas:heldforuseuntildisposalwithnodeprecationheldforuseuntildisposalwithdepreciationcontinuingtobeheldforsalewithnodepreciationThefinancialstatementthatwouldbemostusefultoan ystinunderstandingthechangesthathaveoccurredinacompany'sretainedearningsoverayearisthestatementof: changesinUnderUSGAAP,whichofthefollowingisleastlikelyadisclosureconcerningThecarryingamountsofinventoriescarriedatfairvaluelesscoststoTheamountofthereversalofanywrite-downofTheamountofinventoriesrecognizedasanexpenseduringtheUndertheInternationalAccountingStandardsBoard's(IASB's)ConceptualFramework,oneofthequalitativecharacteristicsofusefulfinancialinformationisthatdifferentknowledgeableuserswouldagreethattheinformationisafaithfulrepresentationoftheeconomiceventsthatitisintendedtorepresent.Thischaracteristicisbestdescribedas:Inaccrualaccounting,ifanadjustingentryresultsinthereductionofanassetandtherecordingofanexpense,theoriginatingentryrecordedwasmostlikelya(n):Twopharmaceuticalcompanies,CompanyAandCompanyB,internallydevelopdrugsanddrugyticssoftware.CompanyAreportsinaccordancewithIFRSwhereasCompanyBreportsinaccordancewithUSGAAP.Whichofthefollowingstatementsismostaccurateregardingthedevelopmentcostsofthedrugpatentsandsoftwaredevelopment?CompanyBcancapitalizethedevelopmentcostsrelatedtodrugdevelopmentifitmeetscertainCompanyAcancapitalizethedevelopmentcostsrelatedtosoftwaredevelopmentifitmeetscertaincriteria. riodofrisinginventorycosts,acompanydecidestochangeitsinventorymethodfromFIFO( out)totheweightedaveragecostmethod.Undertheweightedaveragecostmethod,whichofthefollowingfinancialratioswillmostlikelybehigherthanunderFIFO?Debt-to-equityNumberofdaysinUnderUSGAAP,interestpaidismostlikelyincludedinwhichofthefollowingcashflowAretailerprovidescreditcardsonlytoitsmostvaluedcustomerswhopassarigorouscreditcheck.AcreditcardcustomerorderedanitemfromtheretailerinMay.TheitemwasshippedanddeliveredinJuly.Theitemappearedonthecustomer'sJulycreditcardstatementandwaspaidinfullbytheduedateinAugust.ThemostappropriatemonthinwhichtheretailershouldrecognizetherevenueThefollowingtableshowsselecteddatafromacompany's IncreaseinaccountsIncreaseinaccountsThecashflowfromoperationsisclosestAcompanyoperatinginahighlyfragmentedandcompetitiveindustryreportedanincreaseinreturnonequity(ROE)overtheprioryear.WhichofthefollowingreasonsfortheincreaseinROEisleastlikelytobesustainable?Thecompany:implementedanewITsystem,allowingittoreduceworkingcapitallevelsas rcentageofdecidedtomakegreateruseoflong-termborrowingincreasedthepricesofitsproductComparedwithusingtheFIFO(in,out)methodtoaccountforinventory,duringriodofrisingprices,whichofthefollowingismostlikelyhigherforacompanyusingLIFO(lastin,out)?Acompanythatprovidescruiseshipvacationsusestermloanstofinancetheacquisitionofnewcruiseships.Whichofthefollowingismostlikelyanegativecovenantfortheloans?ThecompanyseeklenderapprovaltopayensuretheshipsaremaintainaminimumlevelofworkingWhichofthefollowingstatementsaboutbalancesheetsismostaccurate?Forbalancesheetspreparedunder:IFRS,aclassifiedbalancesheetmustpresentcurrentassetsbeforenon-currentUSGAAP,intangiblesmustbevaluedathistoricalIFRS,acommercialrealestatecompanyshouldusealiquiditybasedSelectedinformationaboutacompanyisasCurrentYearProjectionforNextYear($(%ofsales)TaxInterestbearingdebtatTheforecasted e(in$thousands)fornextyearisclosestIfthestatedannualinterestrateis9%andthefrequencyofcompoundingisdaily,theeffectiveannualrate(EAR)isclosestto: ystwantstoestimatethereturnontheS&P500Indexforthecurrentyearusingthefollowingdataandassumptions:Samplesize=50stocksfromtheMeanreturnforthosestocksinthesampleforthepreviousyear=Variance=Thereliabilityfactorfora95%confidenceintervalwithunknownpopulationvarianceandsamplesizegreaterthan30isz.025=1.96.IfheassumesthattheS&P500returnthisyearwillbethesameasitwaslastyear,whichofthefollowingisthebestestimateofthe95%confidenceintervalforthisyear'sS&P500return?0.09934to0.05025to–0.33680toAstock'sexpectedpricemovementoverthenexttwoperiodsisasTime=Time=Time=S0=Su=Suu=Sd=Sud,du=Sdd=Theinitialvalueofthestockis$80.Theprobabilityofanupmoveinanygivenperiodis75%,andtheprobabilityofadownmoveinanygivenperiodis25%.Usingthebinomialmodel,theprobabilitythatthestock'spricewillbe$79.20at oftwoperiodsisclosestto:ThevarianceofreturnsofAssetAis625.ThevarianceofreturnsofAssetBis1,225.ThecovarianceofreturnsbetweenAssetAandAssetBis600.ThecorrelationofreturnsbetweenAssetAandAssetBisclosestto:ThefollowinginformationisavailableforaWeight(%)Return(%)EquitiesClassCashand2ThereturnontheportfolioisclosestWhenaninvestigatorwantstotestwhetheraparticularparameterisgreaterthanaspecificvalue,thenullandalternativehypothesisarebestdefinedas:H0:θ≤θ0versusHa:θ>H0:θ≥θ0versusHa:θ<H0:θ=θ0versusHa:θ≠θ0Usingthefollowingsampleresultsdrawnas25pairedobservationsfromtheirunderlyingdistributions,testwhetherthemeanreturnsofthetwoportfoliosdifferfromeachotheratthe1%levelofstatisticalsignificance.Assumetheunderlyingdistributionsofreturnsforeachportfolioarenormalandthattheirpopulationvariancesarenotknown.Meant-statisticfor24degreesoffreedomandatthe1%levelofstatisticalsignificance=Nullhypothesis(H0):Meandifferenceofreturns=Basedonthepairedcomparisonstestofthetwoportfolios,themostappropriateconclusionisthatrejectedbecausethecomputedteststatisticexceedsacceptedbecausethecomputedteststatisticislessthanUsethefollowingvaluesfromastudent'st-distributiontoestablisha95%confidenceintervalforthepopulationmeangivenasamplesizeof10,asamplemeanof6.25,andasamplestandarddeviationof12.Assumethatthepopulationfromwhichthesampleisdrawnisnormallydistributedandthepopulationvarianceisnotknown.p=p=p=p=9The95%confidenceintervalisclosesttolowerboundof–0.71andanupperboundoflowerboundof–2.20andanupperboundoflowerboundof–2.33andanupperboundofAstockisdeclininginpriceandreachesapricerangewhereinbuyingactivityissufficienttostopthedecline.Thisrangeisbestdescribedasthe:changeinpolarityOverthepastfouryears,aportfolioexperiencedreturnsof–8%,4%,17%,and–12%.Thegeometricmeanreturnoftheportfoliooverthefour-yearperiodisclosestto:Whenconsiderinomutuallyexclusivecapitalbudgetingprojectswith ingrankings—onehasahigherpositivenetpresentvalue(NPV),theotherhasahigherinternalrateofreturn(IRR)—themostappropriateconclusionistochoosetheprojectwiththe:shorterThedollardiscountonaUSTreasurybillwith91daysuntilmaturityis$2,100.Thefacevalueofthebillis$100,000.Thebankdiscountyieldofthebillisclosestto:Onceaninvestorchoosesaparticularcourseofaction,thevalue onefromalternativeactionsbestdescribedassunkopportunityThebeliefthattrendsandpatternstendtorepeatthemselvesandare,therefore,somewhatpredictablebestdescribes:Thenullhypothesisismostlikelytoberejectedwhenthep-valueofthetestfallsbelowaspecifiedlevelofisexceedsaspecifiedlevelofWhichofthefollowingismostlikelyaprivateequitytativeIfthepriceofacommodityfuturescontractisbelowthespotprice,itismostlikelythatcostofcarryexceedstheconveniencerollyieldisHighPlainsCapitalisahedgefundwithaportfoliovaluedat$475,000,000atthebeginningoftheyear.Oneyearlater,thevalueofassetsundermanagementis$541,500,000.Thehedgefundchargesa1.5%managementfeebasedon -of-yearportfoliovalueaswellasa10%incentivefee.Iftheincentivefeeandmanagementfeearecalculatedindependently,theeffectivereturnforahedgefundinvestorisclosestto:Ahedgefundbeginstheyearwith$120millionandearnsa25%returnfortheyear.Thefundchargesa1.5%managementfeeonend-of-yearfund