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Which of the following statements clearly conflicts with the recommended procedures for compliance presented in AIMR's Standards of Practice Handbook?
Which of the following statements clearly conflicts with the recommended procedures for compliance presented in AIMR's Standards of Practice Handbook?A . Investment recommendations may be changed by an analyst without prior approval of a supervisory analyst.B . Prior approval must be obtained for the personal investment transactions of all employees.C...
Kruskal Meriwether is a senior research analyst with Bellwether Advisors. He has been following Crystals & Candles a publicly traded firm which makes high- quality diamond jewelry. Kruskal, after extensive interviews with senior management at Crystals, has inferred that the firm is about to take over a diamond- mining firm in South Africa at a rock- bottom price. The Crystal management has refused to explicitly confirm or deny this but Kruskal firmly believes that such a deal is in the works. He has not used any inside information; just pieced together information from various avenues to come to this conclusion. In his reports, he states, "All my research seems to indicate that Crystal & Candles is likely to buy a South African diamond producer at a bargain price. Clearly, now is the time to buy Crystal and Candles' stock." 2 weeks after his report is released, Crystal's management announces that it has no intentions of making any acquisitions in the near future. This leads to a 7% decline in Crystal's stock, causing a large decline in the accounts of Kruskal's clients. Kruskal has
Kruskal Meriwether is a senior research analyst with Bellwether Advisors. He has been following Crystals & Candles a publicly traded firm which makes high- quality diamond jewelry. Kruskal, after extensive interviews with senior management at Crystals, has inferred that the firm is about to take over a diamond- mining firm...
Standard III includes which of the following?
Standard III includes which of the following?A . Reasonable Basis and RepresentationsB . Preservation of ConfidentialityC . All of these answersD . Performance PresentationE . Use of Professional DesignationF . None of these answersView AnswerAnswer: F Explanation: Standard III deals with Obligation to Inform Employer of Code and Standards, Duty...
Which of the following is/are true about the Performance Presentation Standards?
Which of the following is/are true about the Performance Presentation Standards? I. A member who complies with the mandatory requirements of the PPS but does not follow the recommended requirements can publicly claim compliance with the PPS. II. The PPS are designed to be primarily a performance measurement framework. III....
Because it is not the preferred method recommended by the PPS, the use of ________ valuation needs to be disclosed.
Because it is not the preferred method recommended by the PPS, the use of ________ valuation needs to be disclosed.A . new- dateB . settlement- dateC . trade- dateD . old- dateE . survivor- dateView AnswerAnswer: B Explanation: Trade- date valuation is recommended when calculating performance, although settlement- date valuation...
Maria Golino is a financially savvy client of Hector Gomez, a portfolio manager with a small investment firm. Maria recently directed Hector to execute all trades on her behalf with Omega Brokerage. Omega charges higher commissions than most other brokerage firms but in this case, has agreed to provide research to Hector on behalf of Maria. Hector does not object to this and starts directing Maria's trades to Omega. Hector has
Maria Golino is a financially savvy client of Hector Gomez, a portfolio manager with a small investment firm. Maria recently directed Hector to execute all trades on her behalf with Omega Brokerage. Omega charges higher commissions than most other brokerage firms but in this case, has agreed to provide research...
Standard II (C) - Prohibition against Plagiarism - addresses all of the following forms of communication, except:
Standard II (C) - Prohibition against Plagiarism - addresses all of the following forms of communication, except:A . internet communicationsB . oral presentationsC . electronic data transferD . written presentationsE . audio/visual presentationsF . none of these answersG . group meetingsView AnswerAnswer: F Explanation: Standard II (C) does not concern...
Which of the following is/are true about this sordid mess?
Brikland Strickowski learned a month ago that one of his clients, Stratmann, had been regularly using inside information provided by numerous "contacts" in various firms to generate his trading activity with Brikland. Brikland was surprised at Stratmann's recklessness but did not want to get him into trouble so he did...
Cariella is a junior analyst who is currently preparing a report on a diamond producing firm, Dense Carbon, Inc. Dense Carbon recently announced that the results of a mining survey in its South African diamond mines were in, which revealed substantial amounts of diamond reserves for the first time. It has offered to take a few industry analysts for a tour of the facilities and take stock of the situation first hand. During this tour, all expenses, including air- fare and basic accommodations, were provided for by Dense Carbon. Since the visit spanned a weekend, Dense Carbon also arranged for a Safari tour for all the analysts. Cariella did not consider the safari to be an undue entertainment, given the fact that the analysts had to be in the middle of nowhere for 5 days. She was quite assiduous in her appraisal of the mining reserves and in the final analysis, the tour proved extremely valuable to her analysis.
Cariella is a junior analyst who is currently preparing a report on a diamond producing firm, Dense Carbon, Inc. Dense Carbon recently announced that the results of a mining survey in its South African diamond mines were in, which revealed substantial amounts of diamond reserves for the first time. It...
According to the AIMR- PPS, ________ are defined to include all discretionary and nondiscretionary assets.
According to the AIMR- PPS, ________ are defined to include all discretionary and nondiscretionary assets.A . individually managed assetsB . individual investor's assetsC . total firm assetsD . global assetsView AnswerAnswer: C Explanation: Total firm assets are defined to include all discretionary and nondiscretionary assets. Total firm assets don't refer...
