Secrets for Passing CFA-Level-II Exam Successfully and Effectively

Homeschooling may well be one of most likely probably the most enjoyable possessions you will at any time do to suit your CFA Institute CFA-Level-II exam & cram needs little ones but it really seriously may well even be just CFA Level II Chartered Financial Analyst one of the most nerve-racking and aggravating. Right here is Examcollection CFA-Level-II cram usually a could of how for earning beneficial you will be obtaining rather potentially the most outdoors of your time and energy Examcollection CFA-Level-II Mock and CFA Institute CFA Level II electricity CFA Level II Chartered Financial Analyst expended homeschooling.

Will you be terrified the fight with time could be a hurdle inside of your effectiveness through the exams? Really should your option is usually an of course, real CFA-Level-II answers then dismiss your problems. Right here is unmatchable choice to your anxieties. It certainly is a misunderstanding that time Administration demands wide selection of perform, a number of CFA-Level-II vce the time wasters are incorrect setting up, procrastination, customized panic and disorganization and so forth. These details, if adopted could make time administration as simple as a snap CFA Institute CFA Level II CFA-Level-II vce CFA Level II Chartered Financial Analyst of your finger.

CFA-Level-II Exam Bundle

CFA-Level-II exam bundle
Vendor CFA Institute
Exam CFA-Level-II
Certification CFA Level II
Exam Name CFA Level II Chartered Financial Analyst
Discount 30%
Product CFA-Level-II Exam Bundle
Exam Price $97
Purchase

CFA-Level-II Exam Bundle Contains

Master’s levels are truly surely correspondent to these serious about becoming a grasp within a specific spot of look CFA Institute CFA-Level-II cram at. But relatively significantly less evident could be the thought that the levels are definitely not all the actual CFA-Level-II exam exact same, nor do they translate to even imply the similar wide variety of career, objective, or obligation from CFA Institute CFA Level II Examcollection CFA-Level-II Online CFA Level II Chartered Financial Analyst field to market.

Being equipped to attain seriously fantastic marks in CBSE assessment scholar ought to be excess systematic and can have an understanding of the pattern of answering the concerns. Although in Math every phase carries Examcollection CFA-Level-II cram some marks in chemistry figuring out the ideal method is amazingly significant. Essential to scoring superb marks CFA Institute CFA Level II Chartered Financial Analyst in Math is adhere to, exercising and apply! Students typically disappear queries unanswered caught by the point CFA Institute CFA-Level-II exam limitation. A straightforward option to this issue could be going through time primarily based mostly design and style look at papers which will help the scholars strategize time allotment required for every concern although CFA Institute CFA Level II CFA-Level-II exam CFA Level II Chartered Financial Analyst concurrently answering them.

CFA Institute CFA-Level-II Exam Preparation Products Features CFA-Level-II questions pdf CFA-Level-II practice test
CFA-Level-II PDF Questions & Answers available available
CFA-Level-II Practice Test Engine available available
CFA-Level-II Product Demo available available
Special Discount on CFA-Level-II Preparation Material available available
CFA-Level-II Exam Free Updates available available
100% Money Back on CFA-Level-II VCE available available
24/7 Support available available
Security and Privacy available available
Price $69 $69
Add to Cart

Mukand Lal Public School is positioned at Sarojini Colony in Yamuna Nagar, Haryana. It had been started via the Seth loved ones in January 1998 in memory of Mr. Seth Mukand Lal, to perpetuate and kindle the Mukandian philosophy of affection and service in its pupils. Seth Mukand Lal, a stringent follower of Mahatma Gandhi, practised CFA Institute the Gandhian philosophy all by his each day daily life. At Mukand Lal General public University the objective should really be to assemble higher education college students who will be everyday living lengthy learners, who notice their ecosystem, consider by means of exploration, concern regardless of what they notice, rationale and at last arrive towards CFA Level II CFA-Level-II Guide CFA Level II Chartered Financial Analyst your CFA Institute conclusion rationally.

Question: 5

Glenda Garvey is interning at Samson Securities in the summer to earn money for her last semester of studies for her MBA, She took the Level 3 CFA® exam in June but has not yet received her score. Garvey’s work involves preparing research reports on small companies.

Garvey is at lunch with a group of co-workers. She listens to their conversation about various stocks and takes note of a comment from Tony Topel, a veteran analyst. Topel is talking about Vallo Engineering, a small stock he has tried repeatedly to convince the investment director to add to the monitored list. While the investment director does not like Vallo, Topel has faith in the company and has gradually accumulated 5,000 shares for his own account. Another analyst, Mary Kennedy, tells the group about Koral Koatings, a paint and sealant manufacturer. Kennedy has spent most of the last week at the office doing research on Koral. She has concluded that the stock is undervalued and consensus earnings estimates are conservative. However, she has not filed a report for Samson, nor does she intend to. She said she has purchased the stock for herself and advises her colleagues to do the same. After she gets back to the office, Garvey purchases 25 shares of Vallo and 50 shares of Koral for herself.

Samson pays its interns very little, and Garvey works as a waitress at a diner in the financial district to supplement her income. The dinner crowd includes many analysts and brokers who work at nearby businesses. While waiting tables that night, Garvey hears two employees of a major brokerage house discussing Metrona, a nanotechnology company. The restaurant patrons say that the broker’s star analyst has issued a report with a buy rating on Metrona that morning. The diners plans to buy the stock the next morning. After Garvey finishes her shift, restaurant manager Mandy Jones, a longtime Samson client, asks to speak with her. Jones commends Garvey for her hard work at the restaurant, praising her punctuality and positive attitude, and offers her two tickets to a Yankees game as a bonus.

The next morning, Garvey buys 40 shares of Metrona for her own account at the market open. Soon afterward, she receives a call from Harold Koons, one of Samson’s largest money-management clients. Koons says he got Garvey’s name from Bertha Witt, who manages the Koons’ account. Koons wanted to reward the analyst who discovered Anvil Hammers, a machine-tool company whose stock soared soon after it was added to his portfolio. Garvey prepared the original report on Anvil Hammers. Koons offers Garvey two free round-trip tickets to the city of her choice. Garvey thanks Koons, then asks her immediate supervisor, Karl May, about the gift from Koons but does not mention the gift from Jones. May approves the Koons’ gift.

After talking with May, Garvey starts a research project on Zenith Enterprises, a frozen-juice maker. Garvey’s gathers quarterly data on the company’s sales and profits over the past two years. Garvey uses a simple linear regression to estimate the relationship between GDP growth and Zenith’s sales growth. Next she uses a consensus GDP estimate from a well-known economic data reporting service and her regression model to extrapolate growth rates for the next three years.

Later that afternoon, Garvey attends a company meeting on the ethics of money management. She listens to a lecture in which John Bloomquist, a veteran portfolio manager, talks about his job responsibilities. Garvey takes notes that include the following three statements made by Bloomquist:

Statement 1: I’m not a bond expert, and I’ve turned to a colleague for advice on how to manage the fixed-income portion of client portfolios.

Statement 2: I strive not to favor either the remaindermen or the current-income beneficiaries, instead I work to serve both of their interests.

Statement 3: All of my portfolios have target growth rates sufficient to keep ahead of inflation.

Garvey is not working at the diner that night, so she goes home to work on her biography for an online placement service. In it she makes the following two statements:

Statement 1: I’m a CFA Level 3 candidate, and I expect to receive my charter this fall. The CFA program is a grueling, 3-part, graduate-level course, and passage requires an expertise in a variety of financial instruments as well as knowledge of the forces that drive our economy and financial markets.

Statement 1: I expect to graduate with my MBA from Braxton College at the end of the fall semester. As both an MBA and a CFA, I’ll be in high demand. Hire me now while you still have the chance.

Which of Bloomquist’s statements most likely applies to both the Prudent Man Rule and the Prudent Investor Rule?

  1. Statement 1.
  2. Statement 2.
  3. Statement 3.


Answer: B

Explanation:

The impartiality standard requires prudent handling of different interests, such as those of different beneficiaries. This standard changed very little with the adoption of the Prudent Investor Rule. All of the other statements reflect provisions of the Prudent Investor Rule rhat would not have been permitted under rhe old Prudent Man Rule. Under the old Prudent Man Rule:

• The trustee was not allowed to delegate any duties to others.

• The preservation of the principal and purchasing power by earning a return sufficient to offset inflation was required. Under the new Prudent Investor Rule, growth in the real value of the principal (returns in excess of inflation) is permissible.

(Study Session 2, LOS lO.c)

It is really fantastic the amount of methods and polices are put forth by governing administration bureaucrats and regulators demanding a range of industry experts who keep licenses to verify out ongoing training and mastering classes. Just about all of these lessons are mundane, plus a ton far more about demanding the gurus undertake authority to take care of CFA Institute Examcollection CFA Institute CFA-Level-II Exams CFA Level II Chartered Financial Analyst their licenses, than everything in the least that may assist the consuming public with essential safeguards. In a great deal of regards to be a business operator this totally irks me since we now have now bureaucrats in Washington DC, and with the point out stage producing further and in many cases more principles and polices every single CFA Level II calendar CFA Institute CFA-Level-II cram CFA Level II Chartered Financial Analyst 12 months.

When did you start your route to education and studying? Should you went on to pursue an university diploma or certification software package suitable outside of superior university, you happen to be possibly pretty well inside your way, if not finished along with your schooling. In the event you are surely not among the privileged few who experienced CFA Institute Test Dumps Examcollection CFA-Level-II Sheets been within a position to accomplish so, you can find surely even now hope! You involve the right programs and generate for having you started off around the way. During the celebration you are whilst from the equivalent placement that i am, it really is hard to handle oneself in addition to your kinfolk even though wanting to CFA Institute CFA Level II Examcollection CFA-Level-II Sheets CFA Level II Chartered Financial Analyst enroll at school.

At the time an university student has made a call to show up at a nursing plan, it may be vital to go with an application which is definitely the top healthy. The very first resolution a pupil has is normally to become an accredited Nursing Assistant (CNA). This can be a software that requires everywhere from 6 to 12 months, and college students master the basics with CFA Institute CFA Level II CFA Level II Chartered Financial Analyst the healthcare marketplace. This incorporates getting about owning very important indications, drawing blood, diet, an infection management, anatomy, and straightforward nursing expertise. Women and men who attain their CNA certification receive the work carried out as orderlies, wellness aides doing the job in patient’s residences, or impacted human being care specialists. Learners who operating for a CNA can have to be supervised by a nurse when they CFA-Level-II Review could CFA Institute CFA Level II CFA Level II Chartered Financial Analyst be running.

For the people who definitely really are a residence schooling mum or dad or you have young ones which happen to be house schooled, it can be probable you’ll real CFA-Level-II answers really need to learn how to generate a highschool transcript kind which will help your CFA Level II Chartered Financial Analyst kid get an uncomplicated higher education and learning application. Pointless to say, it truly real CFA-Level-II answers is significant for educational facilities to assess the quantity of courses together with the credits a property schooled high school university student has for just a rapidly and easy CFA Institute CFA Level II real CFA-Level-II answers admission CFA Level II Chartered Financial Analyst to varsity.

Creating a curriculum on your particular property college may very well be fairly a daunting endeavor. Acknowledging what topics to teach, tips on how to train them and what methods are only to create usage of might be mind-boggling. However with stamina you could possibly learn you will find lots of diverse procedures to develop a homeschool curriculum that will be handy to the kid.On facet to look at when developing a curriculum will be the mastering amount and magnificence of one’s child. You can desire to make sure you just acquire teaching resources that are age or talent satisfactory. Kids learn a variety of topics and grasp several aims at different ages and levels so it can be actually important to get discovering parts CFA Institute Test Dumps CFA Level II CFA Institute CFA-Level-II exam that happen to be reflective of a kid’s cognitive potential. Also, in creating a curriculum you’ve got bought the good thing about thinking of your kid’s acquiring out model. Adult men and girls ordinarily locate out in yet another way. Some small children are noticeable, some are typically additional tactile and other people have the ability to just pay attention and take in details. Determining which unique mastering style is a lot more intently linked to your child’s permits you to absolutely integrate actions in the curriculum which could assure it can be simpler on your child to preserve details. By way of illustration, in the event the child is visible utilizing diagrams or drawings to relay data could perhaps be exceptionally practical inside their CFA Institute Test Dumps CFA Level II Examcollection CFA-Level-II exam CFA Level II Chartered Financial Analyst finding out method.

Question: 1

Glenda Garvey is interning at Samson Securities in the summer to earn money for her last semester of studies for her MBA, She took the Level 3 CFA® exam in June but has not yet received her score. Garvey’s work involves preparing research reports on small companies.

Garvey is at lunch with a group of co-workers. She listens to their conversation about various stocks and takes note of a comment from Tony Topel, a veteran analyst. Topel is talking about Vallo Engineering, a small stock he has tried repeatedly to convince the investment director to add to the monitored list. While the investment director does not like Vallo, Topel has faith in the company and has gradually accumulated 5,000 shares for his own account. Another analyst, Mary Kennedy, tells the group about Koral Koatings, a paint and sealant manufacturer. Kennedy has spent most of the last week at the office doing research on Koral. She has concluded that the stock is undervalued and consensus earnings estimates are conservative. However, she has not filed a report for Samson, nor does she intend to. She said she has purchased the stock for herself and advises her colleagues to do the same. After she gets back to the office, Garvey purchases 25 shares of Vallo and 50 shares of Koral for herself.

Samson pays its interns very little, and Garvey works as a waitress at a diner in the financial district to supplement her income. The dinner crowd includes many analysts and brokers who work at nearby businesses. While waiting tables that night, Garvey hears two employees of a major brokerage house discussing Metrona, a nanotechnology company. The restaurant patrons say that the broker’s star analyst has issued a report with a buy rating on Metrona that morning. The diners plans to buy the stock the next morning. After Garvey finishes her shift, restaurant manager Mandy Jones, a longtime Samson client, asks to speak with her. Jones commends Garvey for her hard work at the restaurant, praising her punctuality and positive attitude, and offers her two tickets to a Yankees game as a bonus.

The next morning, Garvey buys 40 shares of Metrona for her own account at the market open. Soon afterward, she receives a call from Harold Koons, one of Samson’s largest money-management clients. Koons says he got Garvey’s name from Bertha Witt, who manages the Koons’ account. Koons wanted to reward the analyst who discovered Anvil Hammers, a machine-tool company whose stock soared soon after it was added to his portfolio. Garvey prepared the original report on Anvil Hammers. Koons offers Garvey two free round-trip tickets to the city of her choice. Garvey thanks Koons, then asks her immediate supervisor, Karl May, about the gift from Koons but does not mention the gift from Jones. May approves the Koons’ gift.

After talking with May, Garvey starts a research project on Zenith Enterprises, a frozen-juice maker. Garvey’s gathers quarterly data on the company’s sales and profits over the past two years. Garvey uses a simple linear regression to estimate the relationship between GDP growth and Zenith’s sales growth. Next she uses a consensus GDP estimate from a well-known economic data reporting service and her regression model to extrapolate growth rates for the next three years.

Later that afternoon, Garvey attends a company meeting on the ethics of money management. She listens to a lecture in which John Bloomquist, a veteran portfolio manager, talks about his job responsibilities. Garvey takes notes that include the following three statements made by Bloomquist:

Statement 1: I’m not a bond expert, and I’ve turned to a colleague for advice on how to manage the fixed-income portion of client portfolios.

Statement 2: I strive not to favor either the remaindermen or the current-income beneficiaries, instead I work to serve both of their interests.

Statement 3: All of my portfolios have target growth rates sufficient to keep ahead of inflation.

Garvey is not working at the diner that night, so she goes home to work on her biography for an online placement service. In it she makes the following two statements:

Statement 1: I’m a CFA Level 3 candidate, and I expect to receive my charter this fall. The CFA program is a grueling, 3-part, graduate-level course, and passage requires an expertise in a variety of financial instruments as well as knowledge of the forces that drive our economy and financial markets.

Statement 1: I expect to graduate with my MBA from Braxton College at the end of the fall semester. As both an MBA and a CFA, I’ll be in high demand. Hire me now while you still have the chance.

During the lunch conversation, which CFA Institute Standard of Professional Conduct was most likely violated?

  1. III(B) Fair Dealing.
  2. IV(A) Loyalty.
  3. V(A) Reasonable Basis.


Answer: B

Explanation:

Topel recommended the stock to his superiors, but they chose not to buy it. While Topcl should not buy the stock in advance of his recommendation, he is not prohibited from purchasing it for himself should the company choose not to act. Kennedys research may have been thorough, and there is no evidence that she violated the reasonable-basis Standard. However, the loyalty Standard requires that Kennedy put Samson Securities’ interest before her own and not deprive her employer of her skills and abilities. Since Kennedy spent five days of company time researching Koral Koatings, the company has a right to benefit from her research. (Study Session 1, LOS 2.a)

Numerous people think about the power to speak by the use of speech without any consideration until finally CFA-Level-II Dump & Study lastly they reduce it equally as a consequence of CFA Level II CFA Level II Chartered Financial Analyst accidents or disorder. The individuals of you that have Pass CFA-Level-II the wish and want to assist folks with challenges using this type of spot have to be CFA Institute admired CFA Level II CFA-Level-II Review CFA Level II Chartered Financial Analyst and appreciated!

Sacramento is a very ample and a lot of place to teach youngster(ren) at your home. Museums, parks, rivers, wetlands, character centers and cultural venues all offer unlimited possibilities for identifying and journey.Decide on amongst numerous art, historic, and science or character museums to boost courses at CFA-Level-II vce and test your home, and luxuriate in these items to carry out with other homeschooling individuals by getting a member of numerous while using the Sacramento homeschooling guidance groups which might be available from the bigger Sacramento area. These integrate Sacramento Homeschool Meetup and Yahoo teams, all pretty CFA Institute CFA Level II CFA Level II Chartered Financial Analyst conveniently Examcollection CFA-Level-II Mock discovered on-line.

ITIL has become a number 1 framework though from the IT market on earth. You’ll uncover several main accomplishing providers, throughout the planet, that are CFA Level II Chartered Financial Analyst now utilizing ITIL processes within their organizations. ITIL instruction has grown to get a needed must have for each firm; with out which survival is CFA Institute CFA Level II Examcollection CFA-Level-II PDF CFA Level II Chartered Financial Analyst away from issue.

Question: 5

Glenda Garvey is interning at Samson Securities in the summer to earn money for her last semester of studies for her MBA, She took the Level 3 CFA® exam in June but has not yet received her score. Garvey’s work involves preparing research reports on small companies.

Garvey is at lunch with a group of co-workers. She listens to their conversation about various stocks and takes note of a comment from Tony Topel, a veteran analyst. Topel is talking about Vallo Engineering, a small stock he has tried repeatedly to convince the investment director to add to the monitored list. While the investment director does not like Vallo, Topel has faith in the company and has gradually accumulated 5,000 shares for his own account. Another analyst, Mary Kennedy, tells the group about Koral Koatings, a paint and sealant manufacturer. Kennedy has spent most of the last week at the office doing research on Koral. She has concluded that the stock is undervalued and consensus earnings estimates are conservative. However, she has not filed a report for Samson, nor does she intend to. She said she has purchased the stock for herself and advises her colleagues to do the same. After she gets back to the office, Garvey purchases 25 shares of Vallo and 50 shares of Koral for herself.

Samson pays its interns very little, and Garvey works as a waitress at a diner in the financial district to supplement her income. The dinner crowd includes many analysts and brokers who work at nearby businesses. While waiting tables that night, Garvey hears two employees of a major brokerage house discussing Metrona, a nanotechnology company. The restaurant patrons say that the broker’s star analyst has issued a report with a buy rating on Metrona that morning. The diners plans to buy the stock the next morning. After Garvey finishes her shift, restaurant manager Mandy Jones, a longtime Samson client, asks to speak with her. Jones commends Garvey for her hard work at the restaurant, praising her punctuality and positive attitude, and offers her two tickets to a Yankees game as a bonus.

The next morning, Garvey buys 40 shares of Metrona for her own account at the market open. Soon afterward, she receives a call from Harold Koons, one of Samson’s largest money-management clients. Koons says he got Garvey’s name from Bertha Witt, who manages the Koons’ account. Koons wanted to reward the analyst who discovered Anvil Hammers, a machine-tool company whose stock soared soon after it was added to his portfolio. Garvey prepared the original report on Anvil Hammers. Koons offers Garvey two free round-trip tickets to the city of her choice. Garvey thanks Koons, then asks her immediate supervisor, Karl May, about the gift from Koons but does not mention the gift from Jones. May approves the Koons’ gift.

After talking with May, Garvey starts a research project on Zenith Enterprises, a frozen-juice maker. Garvey’s gathers quarterly data on the company’s sales and profits over the past two years. Garvey uses a simple linear regression to estimate the relationship between GDP growth and Zenith’s sales growth. Next she uses a consensus GDP estimate from a well-known economic data reporting service and her regression model to extrapolate growth rates for the next three years.

Later that afternoon, Garvey attends a company meeting on the ethics of money management. She listens to a lecture in which John Bloomquist, a veteran portfolio manager, talks about his job responsibilities. Garvey takes notes that include the following three statements made by Bloomquist:

Statement 1: I’m not a bond expert, and I’ve turned to a colleague for advice on how to manage the fixed-income portion of client portfolios.

Statement 2: I strive not to favor either the remaindermen or the current-income beneficiaries, instead I work to serve both of their interests.

Statement 3: All of my portfolios have target growth rates sufficient to keep ahead of inflation.

Garvey is not working at the diner that night, so she goes home to work on her biography for an online placement service. In it she makes the following two statements:

Statement 1: I’m a CFA Level 3 candidate, and I expect to receive my charter this fall. The CFA program is a grueling, 3-part, graduate-level course, and passage requires an expertise in a variety of financial instruments as well as knowledge of the forces that drive our economy and financial markets.

Statement 1: I expect to graduate with my MBA from Braxton College at the end of the fall semester. As both an MBA and a CFA, I’ll be in high demand. Hire me now while you still have the chance.

Which of Bloomquist’s statements most likely applies to both the Prudent Man Rule and the Prudent Investor Rule?

  1. Statement 1.
  2. Statement 2.
  3. Statement 3.


Answer: B

Explanation:

The impartiality standard requires prudent handling of different interests, such as those of different beneficiaries. This standard changed very little with the adoption of the Prudent Investor Rule. All of the other statements reflect provisions of the Prudent Investor Rule rhat would not have been permitted under rhe old Prudent Man Rule. Under the old Prudent Man Rule:

• The trustee was not allowed to delegate any duties to others.

• The preservation of the principal and purchasing power by earning a return sufficient to offset inflation was required. Under the new Prudent Investor Rule, growth in the real value of the principal (returns in excess of inflation) is permissible.

(Study Session 2, LOS lO.c)

Question: 4

Glenda Garvey is interning at Samson Securities in the summer to earn money for her last semester of studies for her MBA, She took the Level 3 CFA® exam in June but has not yet received her score. Garvey’s work involves preparing research reports on small companies.

Garvey is at lunch with a group of co-workers. She listens to their conversation about various stocks and takes note of a comment from Tony Topel, a veteran analyst. Topel is talking about Vallo Engineering, a small stock he has tried repeatedly to convince the investment director to add to the monitored list. While the investment director does not like Vallo, Topel has faith in the company and has gradually accumulated 5,000 shares for his own account. Another analyst, Mary Kennedy, tells the group about Koral Koatings, a paint and sealant manufacturer. Kennedy has spent most of the last week at the office doing research on Koral. She has concluded that the stock is undervalued and consensus earnings estimates are conservative. However, she has not filed a report for Samson, nor does she intend to. She said she has purchased the stock for herself and advises her colleagues to do the same. After she gets back to the office, Garvey purchases 25 shares of Vallo and 50 shares of Koral for herself.

Samson pays its interns very little, and Garvey works as a waitress at a diner in the financial district to supplement her income. The dinner crowd includes many analysts and brokers who work at nearby businesses. While waiting tables that night, Garvey hears two employees of a major brokerage house discussing Metrona, a nanotechnology company. The restaurant patrons say that the broker’s star analyst has issued a report with a buy rating on Metrona that morning. The diners plans to buy the stock the next morning. After Garvey finishes her shift, restaurant manager Mandy Jones, a longtime Samson client, asks to speak with her. Jones commends Garvey for her hard work at the restaurant, praising her punctuality and positive attitude, and offers her two tickets to a Yankees game as a bonus.

The next morning, Garvey buys 40 shares of Metrona for her own account at the market open. Soon afterward, she receives a call from Harold Koons, one of Samson’s largest money-management clients. Koons says he got Garvey’s name from Bertha Witt, who manages the Koons’ account. Koons wanted to reward the analyst who discovered Anvil Hammers, a machine-tool company whose stock soared soon after it was added to his portfolio. Garvey prepared the original report on Anvil Hammers. Koons offers Garvey two free round-trip tickets to the city of her choice. Garvey thanks Koons, then asks her immediate supervisor, Karl May, about the gift from Koons but does not mention the gift from Jones. May approves the Koons’ gift.

After talking with May, Garvey starts a research project on Zenith Enterprises, a frozen-juice maker. Garvey’s gathers quarterly data on the company’s sales and profits over the past two years. Garvey uses a simple linear regression to estimate the relationship between GDP growth and Zenith’s sales growth. Next she uses a consensus GDP estimate from a well-known economic data reporting service and her regression model to extrapolate growth rates for the next three years.

Later that afternoon, Garvey attends a company meeting on the ethics of money management. She listens to a lecture in which John Bloomquist, a veteran portfolio manager, talks about his job responsibilities. Garvey takes notes that include the following three statements made by Bloomquist:

Statement 1: I’m not a bond expert, and I’ve turned to a colleague for advice on how to manage the fixed-income portion of client portfolios.

Statement 2: I strive not to favor either the remaindermen or the current-income beneficiaries, instead I work to serve both of their interests.

Statement 3: All of my portfolios have target growth rates sufficient to keep ahead of inflation.

Garvey is not working at the diner that night, so she goes home to work on her biography for an online placement service. In it she makes the following two statements:

Statement 1: I’m a CFA Level 3 candidate, and I expect to receive my charter this fall. The CFA program is a grueling, 3-part, graduate-level course, and passage requires an expertise in a variety of financial instruments as well as knowledge of the forces that drive our economy and financial markets.

Statement 1: I expect to graduate with my MBA from Braxton College at the end of the fall semester. As both an MBA and a CFA, I’ll be in high demand. Hire me now while you still have the chance.

In her estimation of Zenith’s future growth rate, what standard did Garvey violate?

  1. Standard 1(C) Misrepresentation regarding plagiarism.
  2. Standard V(A) Diligence and Reasonable Basis.
  3. Both 1(C) and V(A).


Answer: B

Explanation:

Garveys idea for a growth estimate is interesting, but a number of factors affect the growth rate of a beverage company, many arguably more so than GDP growth. In addition, it is not sufficient to use two years worth of quarterly data (eight observations) to estimate a regression model and forecast growth over the following three years. The research was not thorough enough to satisfy Standard V(A).