Which of the following would be considered as a nonparametric test?
I). A test to determine if two events are truly independent of each other.
II). A test to determine if the variances of two populations are equal.
III). A test to determine if the means of two populations are equal.
IV). A test dealing with a data set that's made up of rankings, as opposed to nominal values.

The post-audit process will improve capital budgeting because:
I). it helps to improve forecast accuracy.
II). it encourages adoption of improved forecasting methods.
III). it gives executives incentives to fulfill their forecasts.

Benny Len is an analyst at a large Brokerage house. Benny has recently done a study analyzing two years of historical information on the returns of stocks with high PE ratios. Benny concludes that these high PE stocks generate low returns and reports that these stocks should be sold from all client portfolios.
According to CFA Institute's Standards of Professional Conduct, which Standard of Professional Conduct has been violated?

Which one of the following is least likely to be a reason why the GIPS were created?

The impact of sales of receivables is:
I). Operating cash flow is reduced because the proceeds are reported as financing cash flows.
II). A portion of operating cash flow in the current period is borrowed from the future.
III). In the future, if a company sought to reduce the amount of receivables sold or securitized, operating cash flow would decline.