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Emmy Noether is a senior division manager at Harding & Harding, a money management firm. Emmy is quite fastidious about following the rules of the investment industry and has established specific procedures and guidelines designed to prevent any violations. Recently, it surfaced that one of the employees reporting to Emmy, William Bathwater, had been secretly using inside information on a computer maker to generate profits in his portfolio. William had been extremely clever at hiding these profits and only a serendipitous audit by the Compliance Department revealed the pattern.
Emmy Noether is a senior division manager at Harding & Harding, a money management firm. Emmy is quite fastidious about following the rules of the investment industry and has established specific procedures and guidelines designed to prevent any violations. Recently, it surfaced that one of the employees reporting to Emmy,...
________ establishes the fiduciary principles for U.S. corporate pension plans.
________ establishes the fiduciary principles for U.S. corporate pension plans.A . AIMRB . PSPCC . ERISAD . WTOE . UMIFAF . None of these answersG . RELACView AnswerAnswer: C Explanation: ERISA establishes the fiduciary principles for U.S. corporate pension plans. ERISA is very specific in its definition of fiduciaries and...
Xuanchi Zuan is a successful portfolio manager with Up & Away, a money management fund that operates strongly bullish funds. One of Zuan's clients, Margo Margolis, is about to retire in a couple of years. Margo has been phasing out her risky investments over the past five years, moving them into longterm treasury bonds.
Xuanchi Zuan is a successful portfolio manager with Up & Away, a money management fund that operates strongly bullish funds. One of Zuan's clients, Margo Margolis, is about to retire in a couple of years. Margo has been phasing out her risky investments over the past five years, moving them...
Which of the following is an option available to such a firm?
Firms with records or performance calculations for periods prior to the applicable effective date(s) that are not in conformance with the AIMR Performance Presentation Standards can still claim compliance with the standards if certain conditions are met. Which of the following is an option available to such a firm?A ....
________ accounting is mandatory for fixed- income securities.
________ accounting is mandatory for fixed- income securities.A . AccrualB . CashC . FlexibleD . EqualE . Risk- freeF . TotalView AnswerAnswer: A Explanation: Accrual accounting must be used for fixed- income securities and all other securities that accrue income. Accrued income must be included in the market value calculation...
Liz Hurley is an investment advisor who has recently started advising a client, Zeta, regarding investment decisions. Zeta lives in Imphal, where investment laws are quite lax, almost non- existent. Hurley is domiciled in Britania, where investment laws clearly specify that the laws governing finance professionals in any given case are the laws that govern their clients. Britania laws, in general, are far stricter than the AIMR code of ethics. In her dealings with Zeta, Hurley must follow
Liz Hurley is an investment advisor who has recently started advising a client, Zeta, regarding investment decisions. Zeta lives in Imphal, where investment laws are quite lax, almost non- existent. Hurley is domiciled in Britania, where investment laws clearly specify that the laws governing finance professionals in any given case...
Since return results must be calculated on a basis that includes the effect of leverage, return results must be restated to a(n) ________ basis.
Since return results must be calculated on a basis that includes the effect of leverage, return results must be restated to a(n) ________ basis.A . marginB . total assetC . cash flowD . all cashE . multiple cashView AnswerAnswer: D Explanation: Return results must be calculated on a basis that...
According to the AIMR- PPS when presenting results, annual returns for all years must be presented. Performance for periods of less than one year
According to the AIMR- PPS when presenting results, annual returns for all years must be presented. Performance for periods of less than one yearA . must be treated as all of the other performance results.B . must not be included in the presentation.C . must not be annualized.D . must...
For ________ of five or fewer portfolios, the disclosure "five or fewer portfolios" may be made rather than a disclosure of the exact number of portfolios.
For ________ of five or fewer portfolios, the disclosure "five or fewer portfolios" may be made rather than a disclosure of the exact number of portfolios.A . returnsB . investmentsC . segmentsD . compositesView AnswerAnswer: D Explanation: This is an exception allowed by AIMR when disclosing the list of composites.
Standard III (E) is ________.
Standard III (E) is ________.A . Obligation to Inform Employer of Code and StandardsB . Duty to EmployerC . Responsibilities of SupervisorsD . Disclosure of Conflicts to EmployerE . None of these answersF . Disclosure of Additional Compensation ArrangementsView AnswerAnswer: C Explanation: Standard III (A) deals with the Obligation to...
