A recent annual report included the following information:
Note 5: Assets placed in service before January 1, 1997, are depreciated using an accelerated method.
Assets placed in service in 1997 will be depreciated using the straight-line method of depreciation. This change in accounting principle is being made to reflect improvements in the design and flexibility of manufacturing machinery and equipment and improvements in maintenance practices. These improvements have resulted in more uniform productive capacities and maintenance costs over the useful life of an asset. Straight-line is preferable in these circumstances. The change is expected to improve
1 997 after-tax results by $80 to $100 million. The change was not made for income tax reporting purposes.
Which of the following would generally be true as a result of this change?

A natural monopoly occurs when

Which of the following are not correct regarding CFA Institute's GIPS?

A cup contains 4 pennies and 6 dimes. Three coins are selected with replacement from the cup.
What is the probability that exactly 2 of the coins selected were pennies?

Which of the following statements is (are) true with respect to the portfolio management process?
I). Individuals generally define risk in term of standard deviation.
II). The investment horizon for investors in the accumulation phase will be the longest relative to the other phases.
III). The level of return that the investor desires will determine how much risk that the investment manager should take.
IV). The investment horizon is deemed to end at the investor's age of death.