You meet a friend at lunch. He tells you that his firm, XYZ, has just landed a government contract that will double revenues at the firm. This will be announced at a news conference tomorrow.
I). You should advise clients to buy the stock as soon as you return to the office.
II). You should encourage your friend to disclose this information immediately.
III). You should refrain from trading on the information until it is publicly released.

Susan Miller, CFA, works for an investment counseling firm. James Sims, a new client of the firm, is meeting with Miller for the first time. Sims had used another counseling firm for financial advice for years, but has switched his account to Miller's firm. After a few minutes of 'get-acquainted' small talk, Miller explains to Sims that she has discovered a highly undervalued stock that offers large potential gains. She recommends that he purchase the stock for his account. Miller has committed a violation of CFA
Institute's Standards of Professional Conduct. What should she have done differently?

A stock is expected to pay dividends of 1.75 and 2.00 over the next two years, after which its price is projected at $37.50. If the market's discount rate is 11.5%, what should be the current value of this stock?

If an inflation is caused by a demand shock, raising interest rates will likely:

Which of the following is correct?