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NEW QUESTION: 1
Pulser Primorak is an investment manager who recently bid in an IPO on behalf of his clients and was allowed to buy 1,000 shares of the issue. What should Primorak do?
A. He should distribute the IPO shares amongst the client accounts over which he has discretionary investment powers on a pro rata basis.
B. The question is based on a false premise. Primorak should not have bid on an IPO in the first place since this violates the AIMR code of Ethics.
C. He should treat all his customers equally and fairly by distributing the IPO shares amongst all his client accounts on a pro rata basis.
D. He should distribute the IPO shares amongst all his client accounts for which the IPO is an appropriate investment on a pro rata basis.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Standard IV (B.3) - Fair Dealing. Note that the AIMR code does not prohibit investments by portfolio managers in IPOs if they are deemed appropriate investments.
NEW QUESTION: 2
Personal data as defined in the GDPR can be divided into several types. One of these types is described: Data that directly or indirectly reveal someone's racial or ethnic background, political, philosophical, religious views, union affiliation and data related to health or sex life and sexual orientation. What type of personal data is this?
A. Pseudonymized data
B. Indirect personal data
C. Special category personal data
D. Direct personal data
Answer: C
Explanation:
Direct personal data. Incorrect. Both direct and indirect data are described.
Indirect personal data. Incorrect. Both direct and indirect data are described.
Pseudonymized data. Incorrect. Pseudonymized data cannot directly reveal information.
Special category personal data. Correct. This is a definition of special category personal data. (Literature: A, Chapter 1; GDPR Article 4)
NEW QUESTION: 3
All of the following are examples of externalities except which one?
A. Firms training workers who then move to other employers
B. Some consumers being unable to afford goods because prices have been driven up by the demand from other consumers
C. Road congestion caused by rush hour traffic on the roads
D. Pollution resulting from a production process
Answer: B
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