Which of the following two measures are based on the total risk and provide similar rankings?

Which of the following schools of economists applies the utility theory and argues that the government should not counteract business cycles?

Which of the following statements regarding the Markowitz efficient frontier is least likely to be correct? The optimal portfolio for:

The expected P/E ratio of a stock is 10, and the actual P/E ratio is 10.8. What can we say about the stock?

You are given: Price of corn today: $7.00 per bushel 1-year corn future: $8.00 per bushel Which of the following terms most accurately describes this environment?

Zooror, a Japanese notepad maker, has an inventory turnover of 8.7 times per year. The average number of days of inventory for notepad manufacturing is 45 days. How does Zooror compare to its competition?

When marginal products (MP) are maximized, marginal costs (MC) are:

Which of the following statements is most likely correct regarding verification?

GIPS standards least likely resolve misleading practices related to:

Assuming the correlation between an asset and market is 0.67 and the asset and market have standard deviations of 0.34 and 0.19 respectively, the market beta would be closest to:

Of the following, which response best describes for whom an investment policy statement (IPS) should be developed?

Under which of the following situations would an increased return on equity (ROE) more likely be perceived negatively by shareholders?

For short selling purposes if a security is extremely hard to borrow, the short rebate rate may be:

By entering into a currency swap both parties:

When the price of the underlying is above the exercise price, a call option is:

The New York Stock Exchange (NYSE) is the world's largest stock exchange. Companies whose shares are listed on the NYSE have a combined market capitalization of over $10 trillion. This exchange, where investors go to buy and sell stocks, is best classified as a:

When a reliable current market price for a firm’s debt is not available, the cost of debt can be estimated using the:

A company recorded a depreciation expense of $5,000,000 for tax purposes and $3,500,000 for accounting purposes. Which of the following is the correct accounting treatment if the tax rate is 30%?

What would be a recommended action for a firm that has disclosed material non-public information in an analyst meeting?

A type of credit derivative in which credit protection buyer makes a series of regularly scheduled payments to credit protection seller while the seller makes no payment until a credit event occurs is categorized as a:

What is the most likely result of a decrease in the risk-free rate of return on put and call option prices?

Return on capital will most likely be higher in which of the following cases?

Gloria Inc. ships 5 machines to a customer at $5,550 per machine. The total cost for Gloria Inc. is $26,250 and payment is due in 60 days. No cash changes hands at delivery. The accounting treatment related to this transaction at the time of shipment most likely includes:

According to European Central Bank (ECB), debt securities with a maturity of up to two years are part of which of the following aggregate categories of money?

Flotation costs are those costs which are incurred by a company during the process of raising additional capital. The value of these flotation costs is typically related to the amount and type of capital being raised. Which of the following statements is least likely accurate regarding flotation costs? 2

An investor is holding an inverse floating rate note. If interest rates increase, the periodic coupons paid to the investor will:

Which of the following is most accurate regarding a futures contract but not a forward contract?

The Sharpe Ratio measures'

A financial intermediary buys a stock and then resells it a few days later at a higher price. Which intermediary would this most likely describe?

On 1 January 2014, Neway Construction entered into a contract to lay pipes for a factory. The project will take an estimated two years to complete. As stated in the contract, total revenue for the project is an estimated $2,500,000. Total cost is expected to be 70% of revenue. Neway incurred $800,000 of costs in 2014. Assuming Neway estimates percentage complete based on costs incurred as a percentage of total estimated costs. Under the percentage-of-completion method, the revenue that will be reported in 2014 is closest to:

When an increase in interest rate leads to a decline in savings, it implies that:

A consumer with a steeper indifference curve most likely indicates that his marginal rate of substitution (MRSXY) is:

Turkey is the strongest importer of Russian oil products. Which of the following will be the outcome if Turkey places tariffs on imported products?

An investor purchases a 1-month out-of-the-money American call option on a stock. A week later, the stock price is less than the call option strike price. The time value of the option is most likely:

Alonzo Myers manages accounts at GRTY Securities. Jerry Reed, one of his clients, e-mailed Myers to buy 300 shares in the IPO of JJKS Corp’s stock. Few days later, despite being a hot issue, Myers succeeded prorating 500 shares of JJKS Corp. for his clients. After purchasing 500 shares for his clients and 300 shares for Reed as per request, he purchased remaining 200 shares for his wife. Myers:

In April, a farmer goes to the local co-op and puts together a contract agreeing to sell 10,000 bushels of corn at $6.50 a bushel on November 1. This type of an agreement is best described as a:

Under which of the following situations would a nonparametric test be more appropriate than a parametric test?

Bill Hardwick, CFA, is a bond specialist and a fixed-income portfolio manager for a large pension fund. Hardwick is considering inclusion of highly structured mortgage securities in the pension fund. However, his team has analyzed these products and has come to the conclusion that it is difficult to distinguish between good and bad investment options due to the complexity and layers of the securities. Rather than sort it all out, Hardwick opts to just simply avoid this sector entirely and invest instead in simpler securities that can be more easily analyzed and understood. Has Hardwick most likely violated the Standards?

You are provided the following information on a company, Noct, and on the economy: Noct's beta is 0.8 The expected market return is 7.0% The risk-free interest rate is 2.0%. Noct's standard deviation is 0.6 The expected return for Noct is closest to:

Which of the following statements is most likely correct regarding Global Investment Performance Standards' compliance requirements?

Which of the following is most likely to be correct with respect to American-style options?

As of September 5, 2014, the current price of corn is $3.60 per bushel. Farmers have stopped asking if they will profit this year - the question now is how much will they lose for their year's work. Under which of the following 6-month futures corn prices would backwardation most likely be present?

Which of the following statement is least accurate regarding Standard V(C) - Record Retention?

Which of the following is the most accurate description of the defensive interval ratio?

EBB Inc. entered into a three-year contract to construct a building with an estimated total cost of $32 million. Due to limitations, project costs are uncertain and the output of the project cannot be measured reliably. If at the end of year 1EBB spent $26 million, under U.S.GAAP EBB would most likely recognize:

An equity analyst working for a growth oriented mutual fund has a tendency to misvalue the stocks of popular companies that she has previously recommended and the fund already owns. Her behavior is most likely consistent with which of the following biases?

In which of the following circumstances can a producer of agricultural products value the product at the net realizable value (NRV)?

If you earned 4% over the course of 5 months, your annualized return is closest to:

In the event of bankruptcy, which of the following is most accurate?

Which of the following is not a suitable risk return measure for alternative investments?