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NEW QUESTION: 1
What does a performance standard specify?
A. The time required for satisfactory performance
B. The expected outcome
C. The reward that can be earned
D. The experience required to achieve the goal or objective
Answer: B
NEW QUESTION: 2
Martha Gillis, CFA, trades currencies for Trent, LLC. Trent is one of the largest investment firms in the world, and its foreign currency department trades more currency on a daily basis than any other firm. Gillis specializes in currencies of emerging nations.
Gillis received an invitation from the new Finance Minister of Binaria, one of the emerging nations included in Gillis's portfolio. The minister has proposed a number of fiscal reforms that he hopes will help support Binaria's weakening currency. He is asking currency specialists from several of the largest foreign exchange banks to visit Binaria for a conference on the planned reforms. Because of its remote location, Binaria will pay all travel expenses of the attendees, as well as lodging in government-owned facilities in the capital city. As a further inducement, attendees will also receive small bags of uncut emeralds (as emeralds are a principal export of Binaria), with an estimated market value of $500.
Gillis has approximately 25 clients that she deals with regularly, most of whom are large financial institutions interested in trading currencies. One of the services Gillis provides to these clients is a weekly summary of important trends in the emerging market currencies she follows. Gillis talks to local government officials and reads research reports prepared by local analysts, which are paid for by Trent.
These inputs, along with Gillis's interpretation, form the basis of most of Gillis's weekly reports.
Gillis decided to attend the conference in Binaria. In anticipation of a favorable reception for the proposed reforms, Gillis purchased a long Binaria currency position in her personal account before leaving on the trip. After hearing the finance minister's proposals in person, however, she decides that the reforms are poorly timed and likely to cause the currency to depreciate. She issues a negative recommendation upon her return. Before issuing the recommendation, she liquidates the long position in her personal account but does not take a short position.
Gillis's supervisor, Steve Howlett, CFA, has been reviewing Gillis's personal trading. Howlett has not seen any details of the Binaria currency trade but has found two other instances in the past year where he believes Gillis has violated Trent's written policies regarding trading in personal accounts.
One of the currency trading strategies employed by Trent is based on interest rate parity. Trent monitors spot exchange rates, forward rates, and short-term government interest rates. On the rare occasions when the forward rates do not accurately reflect the interest differential between two countries, Trent places trades to take advantage of the riskless arbitrage opportunity. Because Trent is such a large player in the exchange markets, its transactions costs are very low, and Trent is often able to take advantage of mispricings that are too small for others to capitalize on. In describing these trading opportunities to clients, Trent suggests that "clients willing to participate in this type of arbitrage strategy are guaranteed riskless profits until the market pricing returns to equilibrium." According to CFA Institute Standards of Professional Conduct, Gillis may accept the invitation to attend the conference in Binaria without violating the Standards:
A. since she would be the guest of a sovereign government.
B. so long as she refuses the gift of emeralds.
C. so long as she pays her own travel expenses and refuses the gift of emeralds.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Standard 1(B). Attending the conference would be appropriate, but Gillis must avoid any situation that would affect her independence, in order to properly comply with Standard 1(B) Professionalism - Independence and Objectivity. Since Gingeria is remotely located, it is reasonable for the government to pay her travel expenses. However, the gift of emeralds must be refused. The fact that the host is a sovereign government does not matter-the obvious objective is to give the analysts a favorable bias toward the currency and the proposed reforms. (Study Session 1, LOS 2.a)
NEW QUESTION: 3
Refer to the exhibit. What type of attack is represented in the given Wireshark packet capture?
A. a shrew attack
B. a SYN flood
C. a duplicate ACK
D. spoofing
E. TCP congestion control
Answer: B
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