Whenever an investment management firm presents investment performance in compliance with the Global Investment Performance Standards (GIPS), it must state how it defines itself as a firm. Under GIPS,
An entity is registered with the appropriate national regulatory authority overseeing the entitys investment management activities.
B. All assets are managed to one or more base currencies.
C. The subsidiary or division of a company claims GIPS compliance when the parent company is GIPS compliant.
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Sean Dahib, CFA, is in charge of the compliance program at his investment firm. According to the Standards of Practice Handbook, as a supervisor, Sean should least likely perform which of the followin
A. Respond promptly to all violations.
B. Disseminate the contents of the program to all personnel.
C. Incorporate a professional conduct evaluation as part of an employees performance review.
A company has determined that the quantity of that companys product demanded will increase by 5 percent when price is reduced by 10 percent. That companys elasticity demand is best described as:
A. Unitary elastic
B. Perfectly elastic
C. Relatively inelastic
An analyst gathered the following information about an asset sold by a company at the end of the year:
·Original cost = $80,000
·Accumulated depreciation at date of sale = $45,00An analyst gathered the following information about an asset sold by a company at the end of the year:
·Original cost = $80,000
·Accumulated depreciation at date of sale = $45,00
A. Cash flow from operating activities but not net income.
B. Cash flow from investing activities but not net income.
C. Both net income and cash flow from investing activities.
Which of the following will be reduced by the reconstitution of a security market index?
A. Need for rebalancing.
B. Portfolio turnover.
C. The possibility that unqualified securities are included in the index.