Praful Chandarana, CFA, is starting a new business to offer investment-consulting services to pension fund trustees in response to a new regulation that requires all pension fund Investment Policy Sta
A. No.
B. Yes,with regard to Professionalism.
C. Yes,with regard to Duties to Employer.
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A minimum wage above the equilibrium wage is best characterized as a:
A. Price floor
B. Price ceiling.
C. Means of minimizing unemployment.
Which of the following is least likely to be a warning sign of low quality earnings?
A. Greater use of operating leases than peer companies.
B. Use of a higher discount rate in pension plan assumptions.
C. A ratio of operating cash flow to net income greater than 1.0.
Relative to an investor with a steeper indifference curve, the optimal portfolio for an investor with a flatter indifference curve will most likely have:
A lower level of risk and return.
B. A higher level of risk and return.
C. The same level of risk and return.
Which of the following statements is least likely an advantage of investing in hedge funds through a fund of funds? Funds of funds provide:
An increase in expected return through diversification.
B. Expertise in selecting funds and conducting due diligence.
C. Access to successful funds that may otherwise be closed to new investors.