1. Samuel Porter works at a GIPS® compliant investment management firm. He constructs a composite which includes discretionary, fee-paying accounts with value strategies and excludes growth strategy accounts. Does the composite constructed by Samuel most likely meet the GIPS criteria? A. Yes B. No, because he fails to include growth strategy accounts C. No, because… Read More


1. Which of the following statements is most likely to be correct about derivatives? A. A derivative is a financial instrument that derives its value based on the performance of the underlying. B. Derivatives are standardized financial instruments and cannot be customized. C. The performance of a derivative is derived by replicating the performance of… Read More


1. Expected loss is best calculated as: A. the product of loss severity and default probability. B. the sum of loss severity and default probability. C. the product of recovery rate and default probability.   2. A subordinated bondholder recovered some value in a bankruptcy without a senior creditor getting paid in full. The most… Read More


1. Which of the following statements is most likely correct? Statement 1: Securitization is beneficial for banks because it allows banks to maintain ownership of their securitized assets. Statement 2: Securitization is beneficial for banks because it increases the funds available for banks to lend. A. Statement 1. B. Statement 2. C. Neither of them.… Read More