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When dealing with charitable organizations, the fiduciary must consider all of the following, except:
When dealing with charitable organizations, the fiduciary must consider all of the following, except:A . general economic conditions.B . the charity's present and anticipated financial requirements.C . investigation of supervisory activities once violation is known to have occurred.D . long and short- term institutional needs in carrying out the charitable...
Complete the following: According to The Code of Ethics, members of AIMR shall: "Act with ________, competence, dignity and in an ethical manner when dealing with the public, clients, prospects, employers, employees and fellow members."
Complete the following: According to The Code of Ethics, members of AIMR shall: "Act with ________, competence, dignity and in an ethical manner when dealing with the public, clients, prospects, employers, employees and fellow members."A . virtueB . none of these answersC . honorabilityD . integrityE . moralityView AnswerAnswer: D...
Omega Prime Securities is a sizable investment bank that undertakes security issuances on behalf of small and medium- size businesses. Treffil Ellis is the senior vice president of corporate finance at Omega. Treffil, on one of his golf junkets, made acquaintance with Tralth Trevor, owner of a growing chain of resort hotels. Tralth invites Treffil to his estate mansion the next day and over drinks, asks him how fast Omega could issue equity- linked callable notes to finance the $200 million construction of new hotel businesses in Cairo and Bali. He forthrightly tells him that Omega could receive as much as 150 basis points above the normal fee if the issuance could be completed within the month. Treffil knows that this is not enough time to complete a research on Tralth's business and determine the issue price.
Omega Prime Securities is a sizable investment bank that undertakes security issuances on behalf of small and medium- size businesses. Treffil Ellis is the senior vice president of corporate finance at Omega. Treffil, on one of his golf junkets, made acquaintance with Tralth Trevor, owner of a growing chain of...
Which of the following is/are true about the PPS?
Which of the following is/are true about the PPS? I. Accounts of clients that are not currently under the firm's management should not be included in the presentation of the historical performance results. II. Compliance with PPS cannot be met on a composite- by- composite basis, only on a firm-...
If a firm uses discretionary leverage, it must present performance using:
If a firm uses discretionary leverage, it must present performance using:A . all- cash basis i.e. removing leverage effects.B . both actual returns and all- cash basis.C . none of these answers.D . actual returns.View AnswerAnswer: B Explanation: For discretionary leverage, both actual returns and all- cash returns must be...
Standard IV (B.8), Disclosure of Referral Fees, includes ________.
Standard IV (B.8), Disclosure of Referral Fees, includes ________.A . referral fees paid in cashB . referral fees paid "in kind"C . soft dollar referral feesD . all of these answersView AnswerAnswer: D Explanation: Under Standard IV (B.8), appropriate disclosure involves disclosing the nature of the consideration or benefit given...
Andy Pilling is a bond trading specialist who recently started a special fund, the "Structured Bond Fund." The strategy behind this fund is quite complex, involving a mix of highly speculative, high- yield bonds and various tax- free municipal bonds for some stability. Andy has a strong view that the economy will remain vibrant and bullish over the next two years and hence, is not worried about the risky bonds. Assuming a falling rate scenario in this case allows the fund to project an expected return 130 basis points above the S&P 500 return. In his special report, Pilling does not disclose such assumptions nor does he reveal any details about the bond strategy. He does analyze the state of the economy and the future outlook in the report. Based on his reputation and his association with some big name academics, Pilling is able to obtain capital of close to 75 million dollars on this fund alone.
Andy Pilling is a bond trading specialist who recently started a special fund, the "Structured Bond Fund." The strategy behind this fund is quite complex, involving a mix of highly speculative, high- yield bonds and various tax- free municipal bonds for some stability. Andy has a strong view that the...
Under what conditions is Standard II (B)- Professional Misconduct violated?
Under what conditions is Standard II (B)- Professional Misconduct violated? I. The member is convicted of a misdemeanor. II. The member regularly engages in unprofessional but legal behavior. III. The member engages in dishonest activities that do not result in criminal conviction. IV. The member is convicted of a felony.A...
When an analyst reaches conclusions about a firm's impending announcements before the actual release of information, using non- material, non- public information in conjunction with public information, insider trading charges cannot be leveled against her.
When an analyst reaches conclusions about a firm's impending announcements before the actual release of information, using non- material, non- public information in conjunction with public information, insider trading charges cannot be leveled against her. This arises from a legal defense against insider trading charges known as:A . the Shingles...
Standard IV (B.5), Preservation of Confidentiality states:
Standard IV (B.5), Preservation of Confidentiality states:A . all of these answers.B . none of these answers.C . members must release information to AIMR when the Professional Conduct Program is holding an investigation, unless there is a settlement agreement between the parties that stipulates confidentiality.D . if the information is...
