Sanjay Gupta, CFA, is interviewed by the First Faithful Church to manage the churchs voluntary retirement plans equity portfolio based upon his superior return history. Each church staff member choose
A. No
B. Yes,because the manager was hired based upon his previous investment strategy
C. Yes,because the restrictions provided by the Trustees are not in the best interest of the members
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In Elliott Wave Theory, Wave 2 commonly exhibits a pattern best described as a(n):
A. Basing pattern consisting of five smaller waves.
B. Fibonacci ratio percentage retracement composed of three smaller waves.
C. Uptrend moving above the high of Wave 1 and consisting of five smaller waves.
Which of the following statements best describes an advantage of a forward contract over a futures contract? A forward contract:
A. Is essentially free of default risk.
B. Can easily be offset prior to expiration.
C. Allows parties to enter into a customized transaction.
A fund manager would like to estimate the probability of a daily loss higher than 5% on the fund he manages. He decides to employ a method that uses the relative frequency of occurrence based on histo
A priori probability.
B. Empirical probability.
C. Subjective probability.
Tamlorn Mager, CFA, is an analyst at Pyallup Portfolio Management. CFA Institute recently notified Mager that his CFA Institute membership was suspended for a year because he violated the CFA Code of
A. Presenting himself to the public as a CFA charterholder
B. Providing evidence for his position to an outside arbitration panel
C. Using his CFA designation upon expiration of the suspension period