Some of the explanations provided by CFAI was not sufficient for me to understand the concept for the following questions. If you are able to explain the answers to the questions I have, that would be much appreciated! (I may be able to help on other parts of this exam, if anyone posts it)
#8) For this question, I thought that Gupta violated the Professional Conduct by “agreeing to manage the account” given that the Trustees’ wishes were to not invest in companies that sell “sin” products. If the plan trustees state that investing in companies that sell alcohol, tobacco, etc are not aceptable and Gupta says this is not reasonable, shouldn’t Gupta reject the account?
#49) For this question, why isn’t “investments” of 350 included in assets?
#85) I understand the calculation behind dividends, interest paid, and amount borrowed. However, to calculate the price appreciation, I don’t understand why it is “total return - dividend + margin interest.”
I keep thinknig it should be “total return + dividend - margin interest.” Is it because I should back-solve it, and that is why dividend is subtracted?
#92) I thought I understood FRA questions based upon Schewser Q’s, until I saw this Q. How does the formula work?