John MacDaniel, CFA, is a trust officer for Confederation Trust Company. MacDaniel has been using
Joe Stein, a broker, almost exclusively for trust account brokerage transactions. For those stocks in which
Stein's firm makes a market, Stein has been giving MacDaniel lower prices for personal purchases and higher prices for personal sales than he has given MacDaniel's trust accounts and other investors.
John's actions violate which of the following CFA Institute's Standards of Professional Conduct:
I). Standard III (B) Fair Dealing and Standard III (C) Suitability.
II). Standard IV (B), Additional Compensation Arrangements.
III). Standard I (B), Independence and Objectivity
IV). Standard III (A), Loyalty, Prudence and Care.

Default risk can be described as

In 2007 the book value of a company's inventory was $5 million before a $0.3 million write-down was recorded. In 2008, the fair value of the company's inventory was $0.5 million greater than the carrying value. Which of the following statements is/are correct (under the US GAAP)?
I). In 2007 the company's COGS would increase by $0.3 million due to the write-down.
II). In 2008 the company's COGS would decrease by $0.5 million due to the reversal.
III). In 2008 the company would record a $0.3 million recovery as a gain.
IV). In 2007 the company would record a $0.3 million loss due to the write-down.

In terms of CFA Institute's Standards of Professional Conduct when dealing with the procedures for compliance per Standard III(A): Loyalty, Prudence, and Care, which of the following are factors that would aid in complying with this Standard?
I). Follow all the applicable laws and rules.
II). Diversification: all portfolios should be adequately diversified unless the plan guidelines state otherwise.
III). Deal fairly with all clients.
IV). Conflicts of interest: all conflicts must be disclosed.

If a company issues debt and then uses the proceeds to repurchase some of its outstanding shares, keeping other things constant, its ROE will likely: