Candidates typically spend around 1,000 hours over four years preparing for the tests, however the CFA Institute is battling to lower the number of people failing to show up on exam day. Financial News has chosen five sample questions from the CFA Institute’s mock exam for visitors to check themselves against.
Monique Gretta, CFA, is a research analyst at East West Investment Bank. Previously, Gretta worked at a mutual fund management company and has a long-standing client relationship with the managers of the funds and their institutional investors. Gretta provides finance managers often, who work for Gretta’s former employer, with draft copies of her research before disseminating the info to all of the bank or investment company’s clients.
This practice has helped Gretta avoid several mistakes in her reports, and she thinks it is beneficial to the bank or investment company clients, though they are not aware of this practice even. A. her survey is a draft. B. this practice benefits all clients. C. the long-standing client relationships are not disclosed.
An buyer gathers the following data. The analyst does not violate the Standards of Professional Conduct by having long-standing client associations and generally is not required to reveal such associations. However, the analyst is not treating all clients fairly as required by Standard III(B) -Fair Dealing when disseminating investment recommendations; disclosure of the partnership with long-standing clients is not the pressing concern. The analyst has advantaged some clients over others by providing advance information, and all clients do not have a fair chance to act on the information within the draft report. Candidates and Members may differentiate their services to clients, but different levels of service should never disadvantage or negatively affect clients. The possibility that the underlying will go is not part of the binomial model for prices options up. This probability is irrelevant because your options are priced using risk-neutral probabilities. These are derived by constructing a hedged collection in the lack of arbitrage opportunities.
Hence, following is the same graph but heading only up to net well worth of 240 thousand dollars: As can be seen, median family net value this year 2010 was nearly where it is at 1992, 18 years previously. Hence, the financial crisis does erase “almost two decades of accumulated prosperity” as mentioned in this article for the median family. For the mean family, however, it just erased almost one decade of accumulated prosperity. 32,200. This and the other data shown in the graphs above show that net worth is strongly skewed toward the top of the percentiles.
The last column shows the percent change in net worthy of from 2007 to 2010. As can be seen, the greatest percent loss to net value was to the lower percentiles. The percent reduction to the cheapest 25 percent, second 25 percent, third 25 %, next 15 percent, and top ten percent were 100, 43.8, 31.9, 19.7, and 6.4 percent, respectively.
Hence, the burden of the recent economic crisis weighed most heavily on those with the lowest net worth, at least in percentage conditions. Note: There is a discussion of this post at this link. Posted by R Davis at 11:47 PM 0 feedback Email ThisBlogThis! R Davis I became interested in U.S. 1992, the very first time that I recall the debt becoming a major concern in a presidential election. I have blogged further about my motivations for creating this blog and website at this link. Recently, I am working on replicating studies such as the analysis at this link. ▼ October (2) Does Romney’s Tax Plan ACCUMULATE?
If your financial consultant is beholden to their company (and 95% of financial advisors are) they’re dependent on that entity for income, benefits, and job security. If they’re influenced by their employer, they need to fall in the range and follow company purchases. But that’s not so bad is it? 95% of financial consultant representatives being influenced by the business they work for to earn a living? It really is if the ongoing company they stand for is in turn beholden to making the most profits and increasing shareholder satisfaction. If the financial advice directed at you is influenced by corporate profits somehow, how will you be sure it’s in your very best interests?
Investment Banking Relationships – Takes for example XYZ Company wanting to go open, public (a Wall Street machine revenue generator). Wall Street Firm A provides a channel to market XYZ Company stock through their “financial advisors” (and other methods) to consumers. Promoting proprietary or more cost investment and insurance options to consumers is in all likelihood nothing more than an effort to increase personal and company income.
This is true with many investment banking deals as well. 100% of consumers can reap the benefits of low or no-load investment and insurance alternatives. If a financial advisor’s real underlying goal it to create a positive financial impact because of their clients – why aren’t these firms and their financial advisors implementing financial programs using the lowest cost most efficient and effective alternatives?