[单项选择]When an analyst makes an investment recommendation, which of the following statements must be disclosed to clients（）
A. The firm is a market maker in the stock of the recommended company.
B. An employee of the firm holds a directorship with the recommended company.
C. All of these statements must be disclosed to clients.

[单项选择]Michael Malone, CFA, is an investment analyst for a large brokerage firm in New York who covers the airlines industry. Alter hours in his personal time, Malone maintains an online blog on which he expresses his personal opinions about various investment opportunities, including, but not limited to, the airlines industry. On his blog, he posts a very negative investment opinion about WestAir stock. Malone knows that WestAir’s stock will be downgraded to a "sell" by his firm next week. Malone has:（）
A. violated Standard Ⅵ (B) Priority of Transactions by releasing material information to the public before releasing to the firm’s clients.
B. violated Standard Ⅱ (A) Material Nonpublic Information by releasing material that could negatively impact the price of the security.
C. violated Standard Ⅳ (A) Loyalty by divulging confidential information that is the intellectual property of his employer.

[单项选择]A labor market analyst makes the following assertions about trends in labor income: Statement 1: The net effect of technological improvements has been to increase the demand for labor. This can be seen in the long-run increase in real wage rates. Statement 2: The broadest measure of labor income is total wages, salaries, and tips received. Are these two statements correct Statement 1 Statement 2 （）①A. Correct Correct ②B. Incorrect Correct ③C. Correct Incorrect
A. ①
B. ②
C. ③

[单项选择]An analyst estimates that an initial investment of ￡ 500000 in a venture capital project will pay ￡ 6 million at the end of five years if the project succeeds and that the probability the project survives to the end of the fifth year is 25 percent. The required rate of return for the project is 19 percent. The expected net present value of the venture capital investment is closest to:

[单项选择]An analyst has found an investment with what appears to be a great return-to-risk ratio. The analyst double-checks the data for accuracy, keeps careful records, and is careful to not make any misrepresentations as he simultaneously sends an e-mail to all his clients with a "buy" recommendation. According to Standard Ⅴ (A) , Diligence and Reasonable Basis, the analyst has:（）
A. fulfilled all obligations.
B. violated the Standard if he does not verify whether the investment is appropriate for all the clients.
C. violated the Standard by communicating the recommendation via e-mail.

[单项选择]An analyst working at an investment firm has a client that rents limousines. The client tells the analyst that as long as he is the client’s analyst, he can have free use of a limousine several times a year. The analyst needs to:（）
A. inform his supervisor in writing of the offer if the analyst intends to accept the offer.
B. explicitly refuse such an offer.
C. do nothing since the offer is not linked to the performance of the client’s portfolio.

[单项选择]When market rates were 6 percent an analyst observed a $1000 par value callable bond selling for $ 950. At the same time the analyst also observed an identical non-callable bond selling for $ 980. What would the analyst estimate the value of the call option on the callable bond to be worth

[单项选择]When setting investor objectives in the investment policy statement, expressing goals only in terms of returns can:（）
A. lead to inappropriate investment practices by the portfolio manager, such as the use of low-risk investment strategies.
B. distort the expected outcome.
C. lead to inappropriate investment practices by the portfolio manager, such as the use of high-risk investment strategies.

[简答题]

Having Kids Makes You Happy

When I was growing up, our former neighbors, whom we’ll call the Sloans, were the only couple on the block without kids. It wasn’t that they couldn’t have children; according to Mr.Sloan, they just chose not to. All the other parents, including mine, thought it was odd-even tragic. So any bad luck that happened to the Sloans--the egging of their house one Halloween; the landslide(山崩) that sent their pool careering to the street below-was somehow attributed to that fateful decision they’d made so many years before. "Well," the other adults would say, "you know they never did have kids." Each time I visited the Sloans, I’d search for signs of insanity, misery or even regret in their super clean home, yet I never seemed to find any. From what I could tell, the Sloans were happy, maybe even happier than my parents, despite the fact that they were childless.
My impressions may have been swayed b