Morning Ethics GIPS firm definition: investment firm, subsidiary, or division held out to clients or prospective clients as a distinct

business entity Recommendation to provide a compliant presentation to clients Requirement to provide a compliant presentation to prospective clients Annual Professional Conduct Statement must report allegations of cheating/wrongdoings 1.A 2.C 3.A 4.B 5.C 6.C 7.(C) 8.A 9.B 10.C 11.(C) 12.B 13.C 14.A 15.A 16.A 17.C 18.C 1.C 2.B 3.A 4.B 5.C 6.B 7.A 8.A 9.B 10.A 11.C 12.B 13.B 14.A 15.A 16.C 17.A 18.C Quantitative methods Point estimates not as reliable as confidence interval estimates Use of t-distribution increases the reliability of the confidence interval P-value < significance level: reject the null hypothesis Cross-sectional data data on some characteristics of companies at a single point in time 19.C 20.B 21.C 22.A 23.(A) 24.A 25.C 26.B 27.A 28.(A) 29.A 30.C 31.(C) 32.B 19.C 20.B 21.C 22.A 23.A 24.A 25.C 26.B 27.A 28.C 29.B 30.C 31.B 32.B Economics First degree price discrimination: entire consumer surplus is captured by producer; consumer surplus falls to zero 33.C 34.() 35.B 36.C 37.A 38.A 39.() 40.A 41.C 42.A 43.A 44.C 33.C 34.B 35.C 36.C 37.A 38.B 39.C 40.A 41.C 42.B 43.A 44.C Financial statement analysis 45.B 46.A 47.A 48.A 49.(B) 50.A 51.(C) 52.(B) 53.C 54.C 55.(C) 56.B 57.

Afternoon Ethics

1.A 2.B 3.B 4.C 5.(C) 6.A 7.A 8.A 9.B 10.A 11.A 12.A 13.C 14.B 15.A 16.B 17.C 18.C 1.A 2.C 3.B 4.C 5.B 6.A 7.C 8.A 9.C 10.A 11.A 12.B 13.C 14.B 15.A 16.B 17.C 18.A Quantitative methods Nominal rate = real risk-free rate + inflation premium + risk premium Money-weighted return = IRR 19.(C) 20.A 21.A 22.C 23.B 24.A 25.A 26.B 27.A 28.B 29.(C) 30.A 31.B 32.C 19.B 20.A 21.A 22.C 23.B 24.A 25.A 26.B 27.A 28.B 29.B 30.A 31.B 32.C Economics Benefit accrues to the abundant factor when a country opens up 33.B 34.(C) 35.B 36.(A) 37.B 38.B 39.() 40.A 41.A 42.B 43.B 44.B 33.B 34.B 35.B 36.A 37.B 38.B 39.A 40.A 41.A 42.A 43.B 44.B Financial Statement Analysis Managements Discussion and Analysis significant events, conditions, trends, contingencies that may affect future operations Proxy statement compensation agreements for directors and management and their potential conflicts of interest IOSCO assists in attaining goal of uniform regulation as well as cross-border cooperation in combating violations of securities and derivatives laws Debt to equity ratio = total liabilities / shareholders equity Net realizable value IFRS definition of market Current replacement cost US GAAP definition of market ROE = tax burden x interest burden x EBIT margin x asset turnover x leverage Tax burden ratio = Net income / Earnings before tax The higher the better Results in an increase in sustainable growth Sustainable growth rate = retention ratio x ROE Interest burden ratio = EBT / EBIT the higher the better as well 45.B 46.A 47.B 48.(A) 49.B 50.(A) 51.(A) 52.(B) 53.C 54.B 55.B 56.(A) 57.A 58.(C) 59.(C) 60.B 61.C 62.() 63.C 64.B 65.A 66.B 67.(B) 68.A

45.B 46.C 47.B 48.C 49A 50.A 51.A 52.A 53.C 54.B 55.A 56.A 57.A 58.B 59.C 60.B 61.C 62.B 63.C 64.C 65.A 66.B 67.C 68.A Corporate finance 69.B 70.(C) 71.A 72.A 73.(A) 74.(C) 75.B 76.B 77.A 78.B 69.B 70.A 71.C 72.A 73.A 74.A 75.A 76.B 77.C 78.B