1. Joyce Price issues weekly investment reports. Joyce looks for trends and commonalities within the research community. She then presents the findings as her own research and doesn’t cite any sources. Joyce gives them to her boss, Soojung Yu, CFA. Soojung peer-reviews the reports and does not mention anything about citing sources.

Has Soojung most likely violated the Standards?

2. Which of the following statements regarding Internal Rate of Return (IRR) and Net Present Value (NPV) is/are most likely correct?

1: If the NPV and IRR methods give conflicting decisions for mutually exclusive projects, the IRR method should be used to select the project.
2: A project may have positive NPV even if its IRR is less than the cost of capital
3: IRR is the discount rate at which the NPV of the project is zero.
4: A project’s IRR can be positive even if the NPV is negative.

3. Medialink is an American company specializing in business intelligence consulting. One of Medialink’s current project is a 2-year commitment with Isotics, with a total estimated revenue of USD2.0 million and estimated cost of USD1.0 million. Costs are expected to be spread out evenly over each month.

After the first month, under IFRS, Medialink’s recognized revenue is expected to be closest to:

4. The standard deviation of the market portfolio is 0.2. The beta of a company with standard deviation 0.6 and market correlation of 0.4 is closest to:

5. Keisha is looking to avoid purchasing power risk as much as possible. She should consider investing in which type of security?