When inventories start to accumulate, the inventories-to-sales ratio reaches its above-normal level. Which phase of the business cycle is associated with an increased inventories-to-sales ratio?

Which of the following characteristics is unique to the fee structure of private equity funds? 2

In conversation with a prospective client, a portfolio manager stated “I cannot guarantee that you will earn 18% on equities this year but I can provide you a range within which your return will lie. My range is quite popular among my clients and has a history of ten years. Each year, I develop the range by using financial models, economic forecasts and accredited reports. Based on the CFA Institute Standards, the portfolio manager:

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

Compared to investors with long investment time horizons, investors with short investment time horizons most likely require:

An investor wanting to purchase 100 shares of a publicly traded stock would most likely seek out:

How does the oil the industry most likely maintain a premium pricing strategy?

Mark Johnson is an analyst for Big Riches Investment Firm. He replaced Todd Phillips, who was an analyst with Big Riches, but resigned to move overseas. Phillips passed on all of his prior analytical reports and backup data for Johnson to use in his new role. In preparation for an annual valuation of the foodservice equipment industry, Johnson pulled up a valuation model developed by Phillips and changed it to include economic indicators published by the US Bureau of Economic Analysis. Once these revisions were made, Johnson back-tested the results using the S&P 500. Which of the following is most accurate?

DLF Ltd is an Indian company in the business of constructing residential houses. The proceeds derived from the residential houses by the company will most likely be recorded as:

Gary Cohn, CFA, a broker at Slater Investments, works primarily with high net worth individuals. One of his clients, Claire Stafford, has adopted a very successful investment strategy and made a number of successful trades over the past year. Having observed this pattern, Cohn replicates Stafford's trades in his personal account after carrying out the instructions in his client's orders. Has Cohn most likely violated the Standards?

Under IFRS cash receipt of interest cannot be classified as a (n):

A company has just issued $5 million of mandatory redeemable preferred shares with a par value of $100 per share and a 7 percent dividend. The issue matures in 5 years. Which of the following statements is least likely correct? The company’s:

Which of the following statements regarding market efficiency is least likely accurate?

Generating sufficient income and maintaining the real capital value of the fund are most likely the objectives of:

You are presented with 2 investment opportunities and must choose the one with the greater present value: A lump-sum of $2 million or an annuity with 25 payments of $250,000 a year with the first payment starting today. The interest rate is 9% per year compounded annually. Which one will you choose?

Under U.S. GAAP at the end of year 1, EBB would recognize $0 revenue, $0 cost of construction and $0 income. The $26 million expenditure would be recorded as an increase in inventory account and decrease in cash (if EBB paid cash for all expenditures).

Which of the following elements of a financial statement is least likely to be directly related to the measurement of financial position?

You are testing the hypothesis that the equity risk premium is equal to 2.5%. Which of the following is the most appropriate alternative hypothesis?

Under which of the following cases is the capitalization of development cost most likely prohibited?

As the degrees of freedom increases and the t-statistic approaches towards the z-statistic, the tails of the distribution most likely become:

An investor purchases a 2-year zero-coupon bond with par value of $1,000 at $960. The implied interest earned on the bond is closest to:

Bonds issued by special purpose vehicles most likely have a higher credit ratings than their sponsor's unsecured bonds because they:

The Sharpe Ratio measures'

A high-tech industry only has 3 large firms operating in it. This is most likely a:

Sullivan Investments, an asset management firm, complied with the GIPS standards on 1 January 2006. Can Sullivan link its non-GIPS compliance performance for periods beginning on or after 1 January 2000 with its GIPS compliance performance?