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NEW QUESTION: 1
Diagnostic testing for meaningitis usually involves
A. blood cultures.
B. cerebrospinal fluid analysis.
C. testing urine.
D. stool cands.
Answer: B

NEW QUESTION: 2
Chester Brothers, LLC, is an investment management firm with $200 million in assets under management.
Chester's equity style is described to clients as a "large cap core" strategy. One year ago, Chester instituted a new compensation plan for its equity portfolio managers. Under this new plan, each portfolio manager receives an annual bonus based upon that manager's quarterly performance relative to the S&P
500 index. For each quarter of aut-performance, the manager receives a bonus in the amount of 20% of his regular annual compensation. Chester has not disclosed this new plan to clients. Portfolio managers at Chester are not bound by non-compete agreements.
Fames Rogers, CFA, and Karen Pierce, CFA, are both portfolio managers affected by the new policy.
Rogers out-performed the S&P 500 index in each of the last three quarters, largely because he began investing his clients1 funds in small cap securities. Chester has recently been citing Rogers's performance in local media advertising, including claims that "Chester's star manager, James Rogers, has outperformed the S&P 500 index in each of the last three quarters." The print advertising associated with the media campaign includes a photograph of Rogers, identifying him as James Rogers, CFA. Below his name is a quote apparently attributable to Rogers saying "as a CFA chartcrholdcr I am committed to the highest ethical standards." A few weeks after the advertising campaign began, Rogers was approached by the Grumpp Foundation, a local charitable endowment with $3 billion in assets, about serving on their investment advisory committee.
The committee meets weekly to review the portfolio and make adjustments as needed. The Grumpp trustees were impressed by the favorable mention of Rogers in the marketing campaign. In making their offer, they even suggested that Rogers could mention his position on the advisory committee in future Chester marketing material. Rogers has not informed Chester about the Grumpp offer, but he has not yet accepted the position.
Pierce has not fared as well as Rogers. She also shifted into smaller cap securities, but due to two extremely poor performing large cap stocks, her performance lagged the S&P 500 index for the first three quarters. After an angry confrontation with her supervisor, Pierce resigned. Pierce did not take any client information with her, but when she left she did take a copy of a Pierce has not fared as well as Rogers.
She also shifted into smaller cap securities, but due to two extremely poor performing large cap stocks, her performance lagged the S&P 500 index for the first three quarters. After an angry confrontation with her supervisor, Pierce resigned. Pierce did not take any client information with her, but when she left she did take a copy of a computer model she developed while working al Chester, as well as the most recent list of her buy recommendations, which was created from the output of her computer valuation model. Pierce soon accepted a position at a competing firm, Cheeri Group. On her first day at Cheeri, she contacted each of her five largest former clients, informing them of her new employment and asking that they consider moving their accounts from Chester to Cheeri. During both telephone conversations and e-mails with her former clients, Pierce mentioned that Chester had a new compensation program that created incentives for managers to shift into smaller cap securities.
Cheeri has posted Pierce's investment performance for the past five years on its Web site, excluding the three most recent quarters. The footnotes to the performance information include the following two statements:
Statement 1: Includes large capitalization portfolios only.
Statement 2: Results reflect manager's performance at previous employer.
Chester's new compensation plan for awarding bonuses to individual portfolio managers:
A. is consistent with CFA Institute Standards only if fully disclosed to clients.
B. is consistent with CFA Institute Standards, but any bonuses awarded under the plan must be fully disclosed to clients.
C. is consistent with CFA Institute Standards and does not require disclosure.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Standard VI (A). The compensation plan is acceptable under Standard VI(A) Conflicts of Interest - Disclosure of Conflicts, but Chester must disclose the plan to clients. The firm's equity strategy is described as "large cap core." The S&P 500 Index is an appropriate benchmark for such a strategy, but rhe incentive for portfolio managers is to invest outside the index in order to achieve excess returns.
Managers may be motivated to invest in securities that would not be consistent with client objectives or risk profiles. (Study Session 1, LOS 2.a)

NEW QUESTION: 3
The purpose of the economic order quantity model is to:
A. Minimize the inventory quantities.
B. Minimize the sum of the order costs and the holding costs.
C. Minimize the safety stock.
D. Minimize the sum of the demand costs and the backlog costs.
Answer: B
Explanation:
The purpose of the EOQ model is to minimize the sum of inventory order costs (or production setup) and holding (carrying) costs. The EOQ equals the square root of twice the annual demand multiplied by the variable cost per order, divided by the unit periodic holding cost.

NEW QUESTION: 4
Your company has just received approval to purchase a company that offers complementary services to your company. They have assigned you as the project manager for the acquisition. The CFO ha s handed you a Project Charter that describes how this acquisition will improve penetration and open up a new distribution channel for your company's products. She has also given you authority to apply organizational resources to project activities. You are anxious and excited as you head back to your office to organize your thoughts and begin the planning process. Using the Project Charter you define the deliverables and the objectives. The output from this process is the:
A. Scope Statement
B. Project Plan
C. Work Breakdown Structure
D. Scope Management Plan
Answer: A