[PDF] Top 20 CFA 2018 Level 2 Economics Quest bank Economic Growth QBank

... 10. C is correct. Conditional convergence implies that convergence is conditional on the countries having the same saving rate, population growth rate and production function. If these conditions hold the model ... Lihat dokumen lengkap

... 35. Kayla Donovan, CFA, works as a portfolio manager for MacBrady Securities & Co. Some of her wealthy and large clients hold long positions on Swift Delivery, which is a courier service. After analyzing her ... Lihat dokumen lengkap

... The fair acquisition price of CMX based on the comparable transaction analysis is closest to: Valuation Variables CMX Comparable Companies LO.k: Evaluate a takeover bid and calculate t[r] ... Lihat dokumen lengkap

... 2. C is correct. FCFF represents cash flow generated by the operating assets of the business which is then used to pay debt holders, preferred stockholders and common shareholders. Hence Option A is incorrect. ... Lihat dokumen lengkap

... 2. A is correct. Homemade dividend is a concept used by MM in their argument for irrelevance of dividend policy. If a shareholder can do what a company does at no cost, i.e. create dividends by selling his shares, ... Lihat dokumen lengkap

... 6. A is correct. Firms such as high-growth companies, pharmaceutical companies, information technology companies and others in the service industry with few tangible assets which are not readily marketable have ... Lihat dokumen lengkap

... 4. C is correct. Long-run profitability can be measured by the return on invested capital or ROIC. ROIC conveys how efficiently managers are using the capital resources of the company (including the risk capital provided ... Lihat dokumen lengkap

... 3. A CFA Institute candidate enrolled for the Level II program has a popular Facebook page under a pseudonym. He posts exam-style questions to his page every day that has taken the number of likes from 50 ... Lihat dokumen lengkap

... 6. C is correct. The economic pension expense represents the true cost of the pension. The reported pension expense is irrelevant in this case. Since the economic pension expense ($1.2 million) exceeds the ... Lihat dokumen lengkap

... LO.e: Explain effective corporate governance practice as it relates to the board of directors and evaluate strengths and weaknesses of a company’s corporate governance practice.. 11.Co[r] ... Lihat dokumen lengkap

... correct. Economic income is the profit realized from an ...year economic income is the after-tax cash flows from an investment plus the change in market value: Economic income = Cash flow + (Ending ... Lihat dokumen lengkap

... 7. A is correct. The Gordon growth model cannot be applied when the growth rate (15% in this case) is higher than the cost of equity (11% in this case). Options B & C are incorrect, because payout rate ... Lihat dokumen lengkap

... According to the regulatory capture theory, the regulator is often dominated by individuals who are closely connected with the industry they should be regulating.. In such situations the[r] ... Lihat dokumen lengkap

... 2. Suppose the following quotes are available in the interbank market: USD/EUR = 1.3649/1.3651 and JPY/USD = 76.64/76.66. A dealer is quoting a rate of JPY/EUR = 104.66/104.68. Based on this information the most ... Lihat dokumen lengkap

... An investment is NOT expected to yield abnormal positive returns when its market price is higher than its intrinsic value.. When market prices accurately reflect all information, investo[r] ... Lihat dokumen lengkap

... calculated can be used to estimate the required rate of return. A is incorrect because when the expected return is greater than the required return the stock is undervalued. B is incorrect because the required return is ... Lihat dokumen lengkap

... 2. A is correct. Trader violated Standard VI (A) – Disclosure of Conflicts, by not reporting her directorship, stock ownership and cash compensation that she received on account of her position as a director of ... Lihat dokumen lengkap

... According to this standard, “members must deal fairly and objectively with all clients……” Therefore, McKenzie Walker needed to review its trade allocation procedures and set up policies [r] ... Lihat dokumen lengkap

... 6. B is correct. A & C are requirements of the CFA Institute-ROS. B is not a correct requirement of the research objectivity standards because firms must establish polices/procedures that prohibit covered ... Lihat dokumen lengkap

... Bottles Co.’s P/E multiple based on market price is less than the average industry P/E, hence the company is undervalued based on method of comparables.. Its P/E based on market price i.[r] ... Lihat dokumen lengkap