Howard Walton, CFA, is a member of a team working on a heating oil price forecast. There are some specific portions of the forecast with which Walton does not agree, but he is generally confident of the group’s decision-making processes. Which of the following statements is most accurate? Walton:

Which of the following is least accurately considered a firm's factor of production?

Russell Bellamy, CFA, a manager with a regional bank, sends out a regular newsletter to clients on a monthly basis. Independent of his position, Bellamy has been appointed to the Board of a local nonprofit organization that provides grants to local artists. In his latest newsletter to clients, Bellamy mentions his appointment as well as the fact that the organization recently announced the start of a fundraising campaign. Has Bellamy most likely violated the Standards?

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

Which of the following statements is most likely correct regarding parametric and non-parametric tests?

If a European bank is looking to borrow money from another bank over a short term, it would be most likely to use which measure for the assigned rate?

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

A primary motivation for investment in commodities is most likely the:

Which of the following statements is most likely correct regarding the audit of financial statements?

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

The type of chart drawn on a grid, which consists of column X’s alternating with column O’s and does not represent time or volume is most likely the:

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:

The efficiency of an unbiased estimator is measured by its:

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:

In the case of a collusion, firms agree to:

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:

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

The value, at 6% interest, of a bond paying 8% annual coupon payments, redeemable at par in 5 years, with a $25,000 face amount is closest to:

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?

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

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

By complying with GIPS standards firms cannot:

A publishing firm contributed $250,000 to support some philanthropic projects. The firm immediately expensed that amount in its income statement for the current fiscal year. According to applicable tax legislation such contributions are not tax-deductible.

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?

GIPS standards least likely resolve misleading practices related to:

Determine the conversion value of a convertible bond if the conversion ratio is 7:3 and the market price of the bond is $30.

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?

Private equity investments tend to be:

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

The correlation of a risk-free asset to a risky portfolio is closest to

A portfolio manager's small cap portfolio has a beta of 1.2 and standard deviation of 40%. Over the past year, the portfolio returned 10%, the market returned 7%, and the risk-free rate was 2%. The Sharpe ratio is closest to:

The implied volatility on S&P 500 options has decreased over the past month. An analyst would most likely conclude that:

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%?

Lauren Sims, marketing director of Karma Advisors, planned a brief performance presentation in five different U.S states where majority of the firm’s clients are located, in celebration of Karma’s five years of success. In his presentation, Sims clearly includes references to the information presented and also prepared a detailed information report to support his brief presentation. At the conclusion, Sims provided the report only to the clients who requested it. By failing to provide the report to all the clients who attended the session, Sims:

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

Samuel Lopez wants to calculate the GDP or a specific country without taking into account the effect of inflation on prices. Which of the following is the most appropriate GDP measure Lopez should use?

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

A stock index representing U.S. manufacturing would most accurately be described as a:

Which of the following statements is most accurate?

Galactic Hyper is a chain of hypermarkets who sells most of its products for cash, which is why its days sales outstanding are as low as 22 days. Assuming that the firm's average receivables are $234,000, and the cost of goods sold (COGS) for the 1-year period is $1,245,000, the annual sales of Galactic are closest to:

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

Which of the following orders would most likely go unexecuted?

Mathew Chambers manages individual accounts, including his father’s, at Harvey Securities. During a Sunday lunch at a restaurant with his friend Neil Rojas, Chambers noticed the directors of Navarro Motors sitting at the adjacent table. Rojas stated, “I believe Navarro has hired a new CEO as the firm is undertaking many positive amendments in its production process”. On Monday Chambers noticed a $1 increase in Navarro’s share price and purchased 500 shares for his father’s account. Chambers least likely violated:

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

A hypothetical futures contract has a current market price of $19 and initial margin requirement of $9. The maintenance margin requirement is $4. For 15 short contracts, the price at which a margin call will trigger is:

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:

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

Which of the following statements is/are accurate regarding the common-size analysis of financial statements? I. A vertical common-size balance sheet presents all the line items as a percentage of total assets. II. A vertical common-size income statement presents all the line items as a percentage of net income. III. A horizontal common-size income statement calculates all line items as a percentage of the base year's income statement.

In a positively skewed distribution:

Which type of financing is required for a leveraged buyout?