What are the two CFA Institute institutions responsible for both the Code and Standards?
All CFA Institute members and candidates enrolled in the CFA Program are required to comply with the Code of Ethics and with the Standards of Professional Conduct. The two CFA Institute institutions responsible for enforcement of both the Code and Standards are: a) PSP and DCP. b) PCP and DRC. c) PRP and DSC. https://vimeo.com/manage/videos/938321929
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What is the CAL (Capital Allocation Line) in Portfolio Theory?
In portfolio theory we use different graphical representations to illustrate the key concepts. Which of the following sentences better represents the CAL (Capital Allocation Line? a) A line describing the combination of expected return and beta available to an investor from combining the optimal portfolio of risky assets with the risk-free asset. b) A line
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What is the difference between the IRR and the MOIC in alternative investment performance?
Suppose a private equity (PE) firm makes an initial investment in company Epsilon of $5 million. Then, at the end of the first year, the firm needs to place additional capital for an amount of $2.5 million, and at the end of the fourth year, another additional capital investment of $1.5 million. Finally, the position
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What are the main differences between futures and forwards?
When dealing with derivatives, we classify them into contingent claims and firm commitments. Futures and forwards are two of most well-known derivatives. Which of the following sentences is correct in relation to the differential characteristics between futures and options? a) Futures are an exchange-traded firm commitment derivative, while forwards are OTC (Over The Counter) contingent
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What are the main principal repayment structures in fixed-income securities?
When dealing with the main repayment structures of fixed-income securities, we can find different methods for amortization. Mark the correct sentence regarding repayment structures of bonds. a) Bullet bonds are based on the French Amortization Method, and in this type of repayment structure, annuities are made up of interest only. b) Fully amortized bonds are
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What is the first world’s security market index?
Nowadays, security market index are extensively used by investors around the world, and there is huge variety of indices. Which of the following sentences represents the first world’s security market index? a) DJRA (1884). b) DJIA (1878). c) DJCA (1891). https://vimeo.com/manage/videos/938314210
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What are the main differences between debt and equity financing used by corporations?
When comparing debt financing to equity financing used by corporations, there are some key differences. Which of the following sentences represents differential characteristics of debt financing? a) Legal repayment option, discretionary payments, and finite term commitments. b) Residual asset claim, tax-deductible expenses, and finite term commitments. c) Tax-deductible expenses, legal repayment option, and finite term
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What is the difference between the input method and the output method in revenue recognition?
When a firm sells products or services that will be delivered over a long period of time, (e.g., two years), and the firm knows the amount of money it will collect at the end of the transaction, the revenue can be recognized in each period according to two potential methods. Which of the following sentences
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How to differentiate between factors that affect short-term and long-term growth, and factors that affect only the short-term growth?
How to differentiate between factors that affect short-term and long-term growth, and factors that affect only the short-term growth? a) Political Developments. b) Changes in Technology. c) Fiscal and Monetary Policy. https://vimeo.com/manage/videos/938305963
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What is the difference between an ordinary annuity and an annuity due?
How can we calculate the value of an annuity due taking the value of an ordinary annuity, if both annuities have the same number of years, and the same value year after year? a)We need to divide the value of the ordinary annuity by the gross rate of return. b) We need to add
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