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1. Does LeCompte’s second statement during her TV appearance most likely meet the CFA Institute Research Objectivity Standards recommendations?
. The recommended procedures for compliance with Research Objectivity Requirement 11, Rating System, states that firms should prohibit covered employees from communicating a rating or recommendation different from the current published rating or recommendation. because she communicated a rating different from her current published rating contrary to Recommendation 11, which states that firms should prohibit covered employees from communicating a rating or recommendation different from the current published rating or recommendation. because the statement alone about issuing a new report is not a viola- tion. If she disclosed her new recommendation contrary to Recommendation 8, which recommends that reports and recommendations be issued at least quarterly, with additional updates recommended when there is an announcement of significant news or events by, or that might impact, the subject company.
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2. The best answer to Napier’s question about the effect of Nanuk on Sunjet’s other comprehensive income is that Nanuk’s:
Nanuk is translated under the current rate method, so its translational exposure is its net asset position. The weakening CAD (see Exhibit 2) will generate a re-measurement loss in Sunjet’s other comprehensive income. It is the net asset position that is exposed to exchange fluctuations under the current rate method. Per Exhibit 2, the CAD is depreciating vs. the USD so would generate a loss. Candidates may think the CAD is strengthening. Nanuk’s net monetary liability position would generate a re-measurement gain under the temporal method, but it is the net asset position that is exposed to exchange fluctuations under the current rate method.
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3. In sharing her research material with the subject companies, LeCompte most likely violated CFA Institute Research Objectivity Standards with respect to her report(s) on:
LeCompte violated Requirement 6, Relationships with Subject Companies, by sharing the full research report with NanoMem. Sharing any section of a research report that might communicate the analyst’s proposed recommendation, rating, or price target is prohibited by the Research Objectivity Standards. Sharing historical factual information, on the other hand, is not a violation. LeCompte shared with UniFlash management only the part of her report on UniFlash that provides factual information.
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4. Which inputs listed in Exhibit 2 are most likely required in Betta’s development of a reduced form model?
. A reduced form model requires that one of the company’s liabilities trade; it can be a zero-coupon bond or an estimation of zero-coupon bonds from observable risky coupon bond prices that trade. In addition, the company’s default prospects are dependent on macroeconomic state variables. These explanatory variables can include such inputs as the growth rate of GDP and the level of unemployment. The model also requires a risk-free rate. because a reduced form model requires that the state of the economy can be described as a vector of macroeconomic state variables. because a reduced form model requires that some of the company’s debt trades, either a zero-coupon or coupon bond.
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5. Regarding LeCompte’s compensation structure, is Topaz most likely in violation of the CFA Institute Research Objectivity Standards?
Research Objectivity Requirement 5, Research Analyst Compensation, rec- ommends that analysts’ compensation be based on the accuracy of recommendations over time. In addition, compensation should not be directly linked to investment banking or other finance activities, which it is not in this case. LeCompte’s bonus is based on the group’s overall performance and is not specific to the research support she provides to various divisions. The Research Objectivity Standards recommend that analysts’ compensation be based on the accuracy of recommendations over time.
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腦海中有大膽的想法嗎分別並告訴我們
腦海中有大膽的想法嗎