Hi As per standard VB Communication with clients and prospective clients - it is the responsibility of the M/C to communicate regarding any investment action, plan, analysis, recommendation. In the above case, only mid cap and large cap stocks have seen an amendment which is an imperative informatioRead more
Hi
As per standard VB Communication with clients and prospective clients – it is the responsibility of the M/C to communicate regarding any investment action, plan, analysis, recommendation.
In the above case, only mid cap and large cap stocks have seen an amendment which is an imperative information for any client to know. Hence, the M/C should inform the clients as well as the prospective clients.
Small cap stocks have not seen any amendment as such, so special attention is not placed to the small cap stocks and placed to the highly informative one. As per your doubt, prospective clients should be acquaint with the relevant information of the fund’s mandate, investment strategy, style, etc. Just telling them we manage small cap funds also is quite low in the case above discussed, primary narrative of yours should to place focus on the recent updations and amendments.
Hi Mainly Metal Boats is a small manufacturer of welded metal boats which is a highly competitive industry and cyclical too. Firstly, If any industry is highly competitive - they compete with each other for gaining the market share, large customer base with minimum cost possible they can have. EspecRead more
Hi
Mainly Metal Boats is a small manufacturer of welded metal boats which is a highly competitive industry and cyclical too.
Firstly, If any industry is highly competitive – they compete with each other for gaining the market share, large customer base with minimum cost possible they can have. Especially if we talk about fixed cost, In a competitive industry FC is generally very high. To neutralize the impact of FC, companies generally want to sell more, expand their business so the FC per unit of output reduces.
Secondly, the employees are specialized in one job, It would be difficult for them to transit themselves to any other job in any other industry. Even if they want to switch to other companies in the same industry, it would be difficult for them as companies which are cyclical tend to flow with the parlance of economic movements (i.e. ups and downs). As the companies are already driving themselves with high operating leverage, the situation is sometimes less likely.
Hi We have studied that we can diversify the risk of the portfolio when we combine two assets - risk free asset and a risky asset. Recall that in the Portfolio Management chapter, we use to study correlation (negative/positive/0). Here in this question if we combine the risk free asset with a riskyRead more
Hi
We have studied that we can diversify the risk of the portfolio when we combine two assets – risk free asset and a risky asset. Recall that in the Portfolio Management chapter, we use to study correlation (negative/positive/0).
Here in this question if we combine the risk free asset with a risky asset, then we know that SD of risk free asset is zero or no volatility. Therefore put it in the formula –
Now if we know the risk of the risk free asset is zero, we will only be left with the risky asset weight and its SD in the portfolio. So, there will be no scope of diversification as now we can not place any correlation between the Rf and risky asset. Total portfolio risk is driven by the Risky asset.
Hi The answer to this case should be 3. Firstly, Robert is already a part of the Research team (the team which handles the research aspects regarding the call for an investments to take place). If question would have stated something wrong or fishy or confusing about the diligence part then we wouldRead more
Hi
The answer to this case should be 3.
Firstly, Robert is already a part of the Research team (the team which handles the research aspects regarding the call for an investments to take place). If question would have stated something wrong or fishy or confusing about the diligence part then we would be able to hit the company with its wrongness under due diligence but here nothing has been stated regarding the due diligence wrongness or any conflict with due diligence. Therefore, we have to assume that due diligence has been done properly.
Also, as long as the due diligence is not getting impacted, he may identify himself as the part of the research team and the research.
Hi The answer to this case should be 3. Chung has violated standard VB (communication with clients and prospective clients) as he has failed to classify his opinion from what the fact is. Recommending to a client on the basis of an opinion rather being a factual information is a violation under thisRead more
Hi
The answer to this case should be 3.
Chung has violated standard VB (communication with clients and prospective clients) as he has failed to classify his opinion from what the fact is. Recommending to a client on the basis of an opinion rather being a factual information is a violation under this standard. He has also violated standard 1C (Misrepresentation) as he has misguided the clients on the basis of a probable (may or may not possibly happening) situation. Any misrepresentation in pitching investment analysis, recommendation, actions or other professional activities is a violation under this standard.
Hi, This case is a clear cut violation of record retention i.e. standard VC. Under VC, records are the property of a firm. Even if those were generated or made by an employee (Mabel)..he is not authorized to use those records after leaving the firm as they were made under his ex-employer and remainsRead more
Hi,
This case is a clear cut violation of record retention i.e. standard VC.
Under VC, records are the property of a firm. Even if those were generated or made by an employee (Mabel)..he is not authorized to use those records after leaving the firm as they were made under his ex-employer and remains with his ex-employer as their property of interest. Also, if he wants to re-create the records, he has to use the public sources or directly through the covered company at a new firm but not from his memory or sources obtained at the previous employer.
Hi, For any firm to be GIPS compliant, they are required to show at least 5 years of performance history but what if their composite exist for less than 5 years (say 3.5 years).... in that situation the firm has to show performance history since inception and it has to add keep on adding one year inRead more
Hi,
For any firm to be GIPS compliant, they are required to show at least 5 years of performance history but what if their composite exist for less than 5 years (say 3.5 years)…. in that situation the firm has to show performance history since inception and it has to add keep on adding one year in its performance until it reaches the goal of a 10 year performance history. Afterwards, it can remove the beginning years from the performance history.
Absolutely answer should be c. Please recheck the statement - it is saying that significance level is 95% whereas we know that 95% is the confidence level. significance level is 5% in total and 2.5% in one tail.
Absolutely answer should be c.
Please recheck the statement – it is saying that significance level is 95% whereas we know that 95% is the confidence level. significance level is 5% in total and 2.5% in one tail.
ethics qforum moclk
Hi As per standard VB Communication with clients and prospective clients - it is the responsibility of the M/C to communicate regarding any investment action, plan, analysis, recommendation. In the above case, only mid cap and large cap stocks have seen an amendment which is an imperative informatioRead more
Hi
As per standard VB Communication with clients and prospective clients – it is the responsibility of the M/C to communicate regarding any investment action, plan, analysis, recommendation.
In the above case, only mid cap and large cap stocks have seen an amendment which is an imperative information for any client to know. Hence, the M/C should inform the clients as well as the prospective clients.
Small cap stocks have not seen any amendment as such, so special attention is not placed to the small cap stocks and placed to the highly informative one. As per your doubt, prospective clients should be acquaint with the relevant information of the fund’s mandate, investment strategy, style, etc. Just telling them we manage small cap funds also is quite low in the case above discussed, primary narrative of yours should to place focus on the recent updations and amendments.
See lessssei mockk
Hi Mainly Metal Boats is a small manufacturer of welded metal boats which is a highly competitive industry and cyclical too. Firstly, If any industry is highly competitive - they compete with each other for gaining the market share, large customer base with minimum cost possible they can have. EspecRead more
Hi
Mainly Metal Boats is a small manufacturer of welded metal boats which is a highly competitive industry and cyclical too.
Firstly, If any industry is highly competitive – they compete with each other for gaining the market share, large customer base with minimum cost possible they can have. Especially if we talk about fixed cost, In a competitive industry FC is generally very high. To neutralize the impact of FC, companies generally want to sell more, expand their business so the FC per unit of output reduces.
Secondly, the employees are specialized in one job, It would be difficult for them to transit themselves to any other job in any other industry. Even if they want to switch to other companies in the same industry, it would be difficult for them as companies which are cyclical tend to flow with the parlance of economic movements (i.e. ups and downs). As the companies are already driving themselves with high operating leverage, the situation is sometimes less likely.
Hope it helps!
See lessdiversification benefit
Hi We have studied that we can diversify the risk of the portfolio when we combine two assets - risk free asset and a risky asset. Recall that in the Portfolio Management chapter, we use to study correlation (negative/positive/0). Here in this question if we combine the risk free asset with a riskyRead more
Hi
We have studied that we can diversify the risk of the portfolio when we combine two assets – risk free asset and a risky asset. Recall that in the Portfolio Management chapter, we use to study correlation (negative/positive/0).
Here in this question if we combine the risk free asset with a risky asset, then we know that SD of risk free asset is zero or no volatility. Therefore put it in the formula –
Sd(Portfolio) ={ W(risk free)^2 * SD(Risk free)^2 } + { W(risky asset)*(sd of risky asset)} + 2 * W(rf)*W(Risky)*Sd(rf)*SD(risky)*correlation
Now if we know the risk of the risk free asset is zero, we will only be left with the risky asset weight and its SD in the portfolio. So, there will be no scope of diversification as now we can not place any correlation between the Rf and risky asset. Total portfolio risk is driven by the Risky asset.
Hope it helps!
See lessOrganising, Visualising and describing data
For cross sectional data, the necessity is at a point of time. For time series data, it is over the period of time.
For cross sectional data, the necessity is at a point of time.
See lessFor time series data, it is over the period of time.
ethics – recreate using memory
https://forum.sseiqforum.com/question/mock-quest-ethics/
Mock Ethics question
Hi The answer to this case should be 3. Firstly, Robert is already a part of the Research team (the team which handles the research aspects regarding the call for an investments to take place). If question would have stated something wrong or fishy or confusing about the diligence part then we wouldRead more
Hi
The answer to this case should be 3.
Firstly, Robert is already a part of the Research team (the team which handles the research aspects regarding the call for an investments to take place). If question would have stated something wrong or fishy or confusing about the diligence part then we would be able to hit the company with its wrongness under due diligence but here nothing has been stated regarding the due diligence wrongness or any conflict with due diligence. Therefore, we have to assume that due diligence has been done properly.
Also, as long as the due diligence is not getting impacted, he may identify himself as the part of the research team and the research.
Hope it helps!
See lessMock exam – ethics
Hi The answer to this case should be 3. Chung has violated standard VB (communication with clients and prospective clients) as he has failed to classify his opinion from what the fact is. Recommending to a client on the basis of an opinion rather being a factual information is a violation under thisRead more
Hi
The answer to this case should be 3.
Chung has violated standard VB (communication with clients and prospective clients) as he has failed to classify his opinion from what the fact is. Recommending to a client on the basis of an opinion rather being a factual information is a violation under this standard. He has also violated standard 1C (Misrepresentation) as he has misguided the clients on the basis of a probable (may or may not possibly happening) situation. Any misrepresentation in pitching investment analysis, recommendation, actions or other professional activities is a violation under this standard.
Hope it helps!
See lessMock quest – ethics
Hi, This case is a clear cut violation of record retention i.e. standard VC. Under VC, records are the property of a firm. Even if those were generated or made by an employee (Mabel)..he is not authorized to use those records after leaving the firm as they were made under his ex-employer and remainsRead more
Hi,
This case is a clear cut violation of record retention i.e. standard VC.
Under VC, records are the property of a firm. Even if those were generated or made by an employee (Mabel)..he is not authorized to use those records after leaving the firm as they were made under his ex-employer and remains with his ex-employer as their property of interest. Also, if he wants to re-create the records, he has to use the public sources or directly through the covered company at a new firm but not from his memory or sources obtained at the previous employer.
Hope it helps!
See lessreporting gips compliant performance
Hi, For any firm to be GIPS compliant, they are required to show at least 5 years of performance history but what if their composite exist for less than 5 years (say 3.5 years).... in that situation the firm has to show performance history since inception and it has to add keep on adding one year inRead more
Hi,
For any firm to be GIPS compliant, they are required to show at least 5 years of performance history but what if their composite exist for less than 5 years (say 3.5 years)…. in that situation the firm has to show performance history since inception and it has to add keep on adding one year in its performance until it reaches the goal of a 10 year performance history. Afterwards, it can remove the beginning years from the performance history.
See lessHypothesis Testing
Absolutely answer should be c. Please recheck the statement - it is saying that significance level is 95% whereas we know that 95% is the confidence level. significance level is 5% in total and 2.5% in one tail.
Absolutely answer should be c.
Please recheck the statement – it is saying that significance level is 95% whereas we know that 95% is the confidence level. significance level is 5% in total and 2.5% in one tail.
See less