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CFA Institute Standards of Professional Conduct?
Rowan Brothers is a full service investment firm offering portfolio management and investment banking services. For the last ten years, Aaron King, CFA, has managed individual client portfolios for Rowan Brothers, most of which are trust accounts over which King has full discretion. One of King's clients, Shelby Pavlica, is...
Harold Chang, CFA, has been the lead portfolio manager for the Woodlock Management Group (WMG) for the last five years. WMG runs several equity and fixed income portfolios, all of which are authorized to use derivatives as long as such positions are consistent with the portfolio's strategy. The WMG Equity Opportunities Fund takes advantage of long and short profit opportunities in equity securities. The fund's positions are often a relatively large percentage of the issuer's outstanding shares and fund trades frequently move securities prices. Chang runs the Equity Opportunities Fund and is concerned that his performance for the last three quarters has put his position as lead manager in jeopardy. Over the last three quarters, Chang has been underperforming his benchmark by an increasing margin and is determined to reduce the degree of underperformance before the end of the next quarter.
Harold Chang, CFA, has been the lead portfolio manager for the Woodlock Management Group (WMG) for the last five years. WMG runs several equity and fixed income portfolios, all of which are authorized to use derivatives as long as such positions are consistent with the portfolio's strategy. The WMG Equity...
Which of the following statements concerning implementation shortfall and VWAP is incorrect?
Somerset Investment Limited is a Singapore-based money management firm that is conducting an appraisal of its investment performance. Cameron Li, CFA, has been charged with conducting the appraisal, and is to report back to upper management with his findings. Li is convinced that trade executions play a substantial role 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." Determine whether Rose's two comments on the GIPS standards are correct or incorrect.A . Only statement 1 is correct.B . Only statement 2...
According to the Standards of Professional Conduct, Mackley must do which of the following regarding the gifts offered to her by her clients?
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%...
“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." Determine whether Boatman's two comments on the GIPS standards are correct or incorrect.A . Only comment 1 is correct.B . Only comment 2...
Which of the following is a correct assessment of Lepage's decision to sell the shares of AirCon?
Jacques Lepage, CFA, is a portfolio manager for MontBlanc Securities and holds 4 million shares of AirCon in client portfolios. Lepage issues periodic research reports on AirCon to both discretionary and nondiscretionary accounts. In his October investment report, Lepage stated, "In my opinion, AirCon is entering a phase, which could...
Jacques Lepage, CFA, is a portfolio manager for MontBlanc Securities and holds 4 million shares of AirCon in client portfolios. Lepage issues periodic research reports on AirCon to both discretionary and nondiscretionary accounts. In his October investment report, Lepage stated, "In my opinion, AirCon is entering a phase, which could put it 'in play' as a takeover target. Nonetheless, this possibility appears to be fully reflected in the market value of the stock."
Jacques Lepage, CFA, is a portfolio manager for MontBlanc Securities and holds 4 million shares of AirCon in client portfolios. Lepage issues periodic research reports on AirCon to both discretionary and nondiscretionary accounts. In his October investment report, Lepage stated, "In my opinion, AirCon is entering a phase, which could...
Which of the following would generally suggest a narrower tolerance band?
Wealth Management's top economist, Frederick Milton, is an economic cycle forecaster- Milton's economic forecasts indicate an economic upswing that will impact all goods and services sectors. Milton presents his economic findings to the rest of Wealth Management's professionals at their monthly meeting. All are excited about Milton's forecast of an...
