4 Quesions on Schweser Practice Exam Volume I

#2 Answer is A (speak and attain assurance), but why B is not correct? #8 Answer is A (ok to induce clients with money), but why not C? it’s a U.S. company and should be governed by U.S. law. If you say local law should be followed, induce clients with money is not following local law, it’s taking advantage of local law. Following local law and taking advantage of local law is different. #10 Answer is B (ok with lavish benefit if with written approval), I think anyway A should be correct answer. This is a lavish benifit. If the employer approves it, I would think the employer is wrong. #16 Answer is C, why it’s not D

I don’t know how to do problem #24, please help, thanks. A security has annual returns of 5%, 10%, and 15%, using population standard deviation, what’s the coefficient of variation? Thanks.

is it 0.5?

CV= standard deviation / mean

do you guys use 5, 10, 15 to calculate CV or do you use 1.05, 1.1, and 1.15?

if I use 5, 10, 15, standard deviation = 4.08 4.08 / 10 = 0.4 if I use 1.05, 1.1, 1.15, stdv = 0.04082 0.04082 / 1.1 = 0.04


anyone can explain the ethics questions? Thanks