Net income is

• A.sales revenue - COGS.
• B.sales revenue - COGS - operating expenses.
• C.income before taxes - income taxes.

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A positively skewed distribution:

• A.is skewed to the right.
• B.has fat tails and has a large variance.
• C.is skewed to the left.

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A researcher randomly samples 100 citizens of Florida and finds that 95 of the citizens are literate.
The researcher then finds a 90% confidence interval. Which of the following is false?

• A.the researcher is 90% sure that the percentage of literate citizens is between 91.4% and 98.6%
• B.the sample proportion p' is 0.95 and the margin of error is 3.6%
• C.the confidence interval procedure is invalid because Np' and N(1 - p') are not both greater than 5

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Assuming that an investment manager only has a small block of shares from a "hot" IPO. What is the best way for him to allocate this block according to the Standards of Professional Conduct on Fair
Dealing?

• A.Allocate these shares pro-rata to all client portfolios for whom the issue is appropriate.
• B.Allocate a large portion of the shares to institutional clients and a small share to the individual clients.
• C.Allocate all of the shares to the firm's institutional clients.

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Jane Smith has been granted permission to use the CFA designation. Jane has NOT paid her annual
CFA Institute dues. Which of the following statements regarding Jane's use of the CFA designation are correct?

• A.Jane may use the CFA designation but must state that she has not paid her annual CFA Institute dues.
• B.Jane may not use the CFA designation since she has not paid her annual dues.
• C.Jane may use the CFA designation if she plans to pay her annual CFA Institute's dues in the near future, but has not done so yet.

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