1. A stock priced at GBP35.73 is projected to pay dividends of GBP1.50, GBP2.00, and GBP2.50 at the end of the next three years. At the time of the third dividend, the stock is expected to be worth GBP36.23.

If the required rate of return for this stock is 10%, the intrinsic value of the stock is closest to:

2. Which of the following are accurate in an oligopoly with stable equilibrium?

I. Marginal revenue is greater than marginal price.
II. All companies are producing the same level of output.

3. A portfolio manager has a tight tracking error of 50 basis points. The manager expects to be within this tracking error for a given quarter 85% of the time.

If that expectation is correct and each quarter is independent, the probability that the manager is within the tracking error for at least 7 of the next 8 quarters is closest to:

4. Which of the following statements relating to obstacles to efficient allocation of resources is/are most likely incorrect?

I: Price ceilings set below the equilibrium price lead to shortages, bribery, poor quality and black marketeering.
II: Subsidies decrease equilibrium quantities and lead to dead weight losses from overproduction.
III: Production quotas decrease equilibrium quantities and lead to dead weight losses from underproduction.

5. Asmita Mack, CFA, lives in the country of Onionland. Each morning, Asmita crosses the border to the neighboring country of WDC where she manages client portfolios. This morning, a positive earnings report was announced for HawkBlack, Inc. (ticker KANE). Asmita would like to invest in the stock and believes it would benefit her clients as well. WDC has a law that restricts portfolio managers from investing in securities owned by their clients. Onionland has no such law.

To comply with the Standard, what is the minimum that Asmita must do?