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Which of the following properly characterize Hundt's compliance activities?
Hilda Olson covers the chemical industry for Bern Securities. Based on conversations with two executives of InterChem, a major producer of synthetic fabrics, she issues a generalized sector report claiming that "according to a survey of industry executives, rayon feedstocks will be in short supply for at least the next...
In 1955, David Peebles, founder of the successful California-based Peebles Winery, set up the Tokay Endowment. The Tokay Endowment was established to attract talented individuals to the wine industry and to encourage research designed to produce California grapes that would be competitive with those produced in France. The initial $1 million contribution has grown to S75 million. Peebles* grandson was recently given responsibility for management of the endowment. He believes the endowment's asset mix needs to be updated to reflect the alternative investments of hedge funds, managed futures, and private equity. The private equity investment will be an indirect investment using middle-market buyout funds (labeled "buyout funds" in the exhibits below). The endowment currently has 60% invested in equities and 40% in bonds. The endowment must maintain a 50% equity weighting and the grandson wants to invest 20% of total assets in the alternative investment category
SIMULATION In 1955, David Peebles, founder of the successful California-based Peebles Winery, set up the Tokay Endowment. The Tokay Endowment was established to attract talented individuals to the wine industry and to encourage research designed to produce California grapes that would be competitive with those produced in France. The initial...
Code of Ethics? Standards of Professional Conduct?
Johnny Bracco, CFA, is a portfolio manager in the trust department of Canada National (CNL) in Toronto. CNL is a financial conglomerate with many divisions. In addition to the trust department, the firm sells financial products and has a research department, a trading desk, and an investment banking division. Part...
“The GIPS general provisions for real estate and for private equity require that both income and capital
“The GIPS general provisions for real estate and for private equity require that both income and capital gains are included in the calculation and presentation of returns." Regarding the comments by Rose and Boatman on the incorporation of pension plan risk into the weighted average cost of capital, determine whether...
The firm must increase the level of review or restriction of proprietary trading activities during periods in which the firm has knowledge of information that is both material and nonpublic.
The firm must increase the level of review or restriction of proprietary trading activities during periods in which the firm has knowledge of information that is both material and nonpublic. Bentley has identified two of Green's analysts, neither of whom have non-compete contracts, who are preparing to leave Federal Securities...
Before implementing risk management techniques, Smitherspoon expresses confusion regarding some measures of risk management. "I know beta and standard deviation, but what is all this stuff about convexity, delta, gamma, and vega?
Mark Stober, William Robertson, and James McGuire are consultants for a regional pension consultancy. One of their clients, Richard Smitherspoon, chief investment officer of Quality Car Part Manufacturing, recently attended a conference on risk management topics for pension plans. Smitherspoon is a conservative manager who prefers to follow a long-term...
By selling their personal holdings of Swift Petroleum, did the employees of BIC's investment banking division violate any CFA Institute Standards of Professional Conduct?
Theresa Bair, CFA, a portfolio manager for Brinton Investment Company (BIC), has recently been promoted to lead portfolio manager for her firm's new small capitalization closed-end equity fund, the Quaker Fund. BIC is an asset management firm headquartered in Holland with regional offices in several other European countries. After accepting...
Does Mackley's signature at the end of her brochure violate any CFA Institute Standards of Professional Conduct?
Stephanie Mackley is a portfolio manager for Durango Wealth Management (DWM), a regional money manager catering to wealthy investors in the southwestern portion of the United States. Mackley's clients vary widely in terms of their age, net worth, and investment objectives, but all must have at least $1 million in...
“The GIPS general provisions for real estate and for private equity require that both income and capital gains are included in the calculation and presentation of returns."
“The GIPS general provisions for real estate and for private equity require that both income and capital gains are included in the calculation and presentation of returns." The capital return and income return for Monroe are closest to: Capital return income returnA . 5.8% -2.6%B . 5.8% 0.3%C . 10.2%...
Of the three scenarios (see Figure 2) presented to the Beeman Enterprises executives, which would represent the appropriate reaction to increasing the pension plan allocation to equity, if management wishes to maintain its current equity beta?
“The GIPS general provisions for real estate and for private equity require that both income and capital gains are included in the calculation and presentation of returns." Of the three scenarios (see Figure 2) presented to the Beeman Enterprises executives, which would represent the appropriate reaction to increasing the pension...
