Question 1

Section A (1 Mark)_______________ is concerned with capturing, storing, extracting, integrating, processing, interpreting, distributing, using and reporting customer-related data to enhance both customer and company value.

Options :

A : Strategic

B : Operational

C : Analytical

D : Collaborative

Answer: C

Question 2

Section B (2 Mark)If a portfolio manager has a good ability to select undervalued securities but a poor ability to forecast overall market, the following makes sense for him:

Options :

A : Concentrate holdings in selected undervalued stocks and shift beta below and above the desired long-term average based on market forecasts

B : Hold a broadly diversified portfolio of stocks and keep beta stable at the desired long-term average

C : Concentrate holdings in selected undervalued stocks and keep beta stable at the desired long-term average

D : Hold a diversified portfolio of stocks and shift beta above and below desired long-term average based on market forecasts

Answer: C

Question 3

Section B (2 Mark)___________, the net profit margin realized by the enterprise from an international transaction entered into with an associated enterprise is computed in relation to cost incurred or sales affected or assets employed or to be employed in the enterprise or having regard to any relevant base.

Options :

A : Transactional Net Margin Method

B : Cost-Plus Method

C : Profit Split Method

D : All of the Above

Answer: A

Question 4

Section A (1 Mark)____________ may be responsible for the prevalence of active versus passive investments management.

Options :

A : Forecasting errors

B : Overconfidence

C : Mental accounting

D : Conservatism

Answer: B

Question 5

Section A (1 Mark)Depending on how questions are asked, ___________ can cause investors to communicate responses to questions about risk tolerance that are either unduly conservative or unduly aggressive.

Options :

A : Framing Bias

B : Mental accounting

C : Representativeness Bias

D : Hindsight bias

Answer: A

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