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________ and other hybrid securities must be treated consistently across and within composites.
________ and other hybrid securities must be treated consistently across and within composites.A . PortfoliosB . ConvertiblesC . AssetsD . BondsView AnswerAnswer: B Explanation: This is one of the requirements which is mandatory in order to be in compliance with the PPS.
Which of the following AIMR standards pertains to the responsibilities of supervisors?
Which of the following AIMR standards pertains to the responsibilities of supervisors?A . IVB . II CC . VD . None of these answersView AnswerAnswer: D Explanation: Responsibilities of Supervisors falls under Standard III (E).
Which of the following can be found in Standard I?
Which of the following can be found in Standard I? A. Members shall deliver a copy of the Code to their employer. B. Members shall not participate in any professional conduct involving dishonesty, fraud, deceit, etc. C. Members shall not knowingly participate or assist in any violation of laws, rules...
Standard ________ pertains to fair dealing with customers and clients.
Standard ________ pertains to fair dealing with customers and clients.A . III (B)B . IV (C . 3)D . IV (A)E . I (D)F . None of these answersView AnswerAnswer: B Explanation: Standard IV (B.3) states: "Members shall deal fairly and objectively with all clients and prospects when disseminating investment...
When a manager is responsible for the portfolios of pension plans or trusts, the duty of loyalty is owed to the ________.
When a manager is responsible for the portfolios of pension plans or trusts, the duty of loyalty is owed to the ________.A . beneficiariesB . none of these answersC . stockholders of the firmD . investing publicE . entity who hires the managerF . corporationG . board of directorsH ....
Brokers who knowingly or recklessly engage in excessive trading in customers' accounts are known to be ________.
Brokers who knowingly or recklessly engage in excessive trading in customers' accounts are known to be ________.A . over- sellingB . mixingC . churningD . none of these answersE . shinglingView AnswerAnswer: C Explanation: Brokers and dealers are held to a higher standard of care than the average person. They...
Carmina Aburana is a sales assistant to Drew Door, a sales manager at Hicost Brokerage. Hicost has a policy of requiring at least 20% margin on stocks that are deemed illiquid or extremely risky. For these purposes, it creates and updates a list of such stocks on a weekly basis. Yoddly Yoo, Inc. is an up and coming internet firm whose stock has been on this list for some time now. One of Carmina's "blue chip" clients, Amadeus, has been speculating on Yoddly's stock for the past two weeks, repeatedly going in and out of the market. In this process, he has unfortunately generated significant losses and his margin on the account has fallen to 12%. To make up for the shortfall, Amadeus calls up Carmina and requests a "borrowing on the account" of 10% for the next 2 weeks, promising to pay a hefty interest rate of 38%on an annualized basis. Since Amadeus has never been in default, Carmina agrees to the arrangement and moves some funds from another client's account. There is no explicit rule at Hicost that prohibits such an arrangement, though it is clearly an oversight on part of the Compliance department. Drew notices this transaction and calls Carmina for an explanation. On hearing the explanation, he tells Carmina that such arrangements are in violation of the company rules and should not be repeated. After 2 weeks, Amadeus supplies the necessary margin for his account.
Carmina Aburana is a sales assistant to Drew Door, a sales manager at Hicost Brokerage. Hicost has a policy of requiring at least 20% margin on stocks that are deemed illiquid or extremely risky. For these purposes, it creates and updates a list of such stocks on a weekly basis....
Level I verification requires independent attestation that the requirements of the AIMR- PPS have been met on a(n) ________ basis.
Level I verification requires independent attestation that the requirements of the AIMR- PPS have been met on a(n) ________ basis.A . internationalB . attainableC . nationwideD . firmwideView AnswerAnswer: D Explanation: This is a requirement under Level I verification procedures.
Standard III (D) deals with ________.
Standard III (D) deals with ________.A . Professional MisconductB . Use of Professional DesignationC . PlagiarismD . Fundamental ResponsibilitiesE . None of these answersF . Obligation to Inform Employer of Code and StandardsView AnswerAnswer: E Explanation: Standard I deals with Fundamental Responsibilities. Standard II (A) deals with Use of Professional...
ERISA fiduciaries must adhere to the following prudent procedures:
ERISA fiduciaries must adhere to the following prudent procedures: - establish a written investment policy for the plan - diversify plan assets - make investment decisions with the skill and care of a ________ - monitor investment performance - control investment expenses - avoid prohibited transactionsA . memberB . supervisorC...
