Which portion of an investment policy statement is most likely to state any restriction on portfolio leverage?
A. Procedures.
B. Investment guidelines.
C. Duties and responsibilities.
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Zhou Lun, CFA, is an equity analyst who recently prepared a full report on BMM Corporation. The report included financial projections developed by Zhou Lun and information gathered from a third-party
A. No.
B. Yes,because the report relied on third-party research.
C. Yes,because the report was not properly disseminated.
Business risk is best described as resulting from the combined effects of a firms:
A. Financial risk and sales risk.
B. Sales risk and operating risk.
C. Operating risk and financial risk.
Faye Harlan, CFA, is estimating the cost of common equity for Cyrene Corporation. She prepares the following data for Cyrene:
·Price per share = $50.
·Expected dividend per shareFaye Harlan, CFA, is estimating the cost of common equity for Cyrene Corporation. She prepares the following data for Cyrene:
·Price per share = $50.
·Expected dividend per share
A. Dividend discount model approach.
B. Capital asset pricing model approach.
C. Bond yield plus risk premium approach.
Which of the following statements about the univariate, multivariate, and standard normal distributions is least accurate?
A univariate distribution describes a single random variable.
B. A multivariate distribution specifies the probabilities for a group of related random variables.
C. The standard normal random variable,denoted Z,has mean equal to one and variance equal to one.