Variance of the return on the market

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Briefly explain why you think each of the following statements is true or false.

i) An investment manager receives research from analysts recommending a 'buy' for shares of some company. He then buys some shares for his own personal account and then disseminates the recommendation to his clients. This conduct does not violate the CFA Standards of Professional Conduct.

ii) The present value of £5,000 which will be received in four year's time if the discount rate is 8% per annum is £3670.

iii) In a private equity partnership, the term 'general partners' best describes the investment managers.

iv) A portfolio has a CAPM beta of 1.2 and a covariance with the market of 240. The variance of the return on the market is 200.

v) The type of analysis that uses ratio analysis to evaluate equities is called 'technical analysis'.

Reference no: EM133003118

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