GIPS standards least likely resolve misleading practices related to:

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?

What happens to the prices in the long run when the aggregate demand increases and the economy recovers from an inflationary gap (classical approach)?

Which of the following is least likely a macroeconomic influence that affects an industry’s growth? Changes in:

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

For venture capital investing, later stage financing is the capital provided for a company:

Which of the following statements is most likely correct regarding the major sections of GIPS standards?

Smith owns 500 shares of Wood Craft Inc. and the firm is going to elect 10 board directors. Under statutory voting Smith can cast:

After 5-years of service with Jacob Securities as a financial planner, Shane Alvarado planned to start his own practice in his hometown. He informed his employer through email three days before starting his independent practice. The employer was on a business trip for a week and on his return he accepted his resignation. Alvarado always maintained his personal records related to training programs that he conducted at Jacob Securities, and he used that material in his new project. Alvarado:

If the yield curve rises uniformly, how would the price of a 8.5% coupon bond yielding 2.75% most likely change in a year?

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?

Gilbert Love worked as financial analyst at Milton Securities. During his employment at Milton, Love covered Indigo Corp and developed detailed financial models, assumptions and supporting reports. When Milton switched his job, his new employer assigned him to analyze Indigo Corp. Milton developed a new model with improved assumptions and specifications and re-created the supporting records by gathering data from the covered company. Has Milton violated any CFA Institute Code and Standards?

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?

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

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

You have been given the following probabilities: P(A) = 35% P(B) = 65% P(B | A) = 65% What is the probability that Event A and Event B occur?

Which of the following are not part of other comprehensive income? I. Exchange differences on translating foreign operations II. Issuance of equity shares III. Actuarial gains/losses IV. Loss from sale of machinery

Which of the following is the highest ranked unsecured debt?

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?

George Mendes is considering an employment offer made by DR Associates, an investment bank. Should Mendes accept the offer, he will be responsible for supervising twenty portfolio managers. Mendes' only concern is that employees' personal trades are not being adequately monitored and many of these transactions involve front-running clients' trades. To comply with the CFA Institute Standards of Professional Conduct, Mendes should most likely:

Dan Fisher is an investment manager at Rotterdam Securities and often uses Topaz brokerage services for his clients. Corey Foster, Fisher’s client, has directed him to use the services of Luna Brokerage House for him. Fisher believes that Topaz offers best price and better research reports compared to Luna. The best course of action for Fisher is to use the services of:

Under which of the following accounting standards would a deferred tax be recognised on temporary differences arising from undistributed profits of associates (investments) when the investor controls the sharing of profit?

Which of the following statements least likely represents the correct treatment of impairment loss?

Which of the following statements is/are accurate? I. Differences in laws across countries determine different behavior between CFA members and candidates. II. Within the investment industry, a CFA member or candidate will always understand ethical behavior by strictly adhering to the laws of the country in which he/she operates.

Which of the following is most likely an example of a non-amortizing loan?