Missed Questions

Question 1

What are the progressions of the Product Life Cycle (PLC) classifications?

Answer 1

Embryonic
Growth
Shakeout
Maturity
Decline

Question 2

Which of the following best describes the meaning of an effective duration of 3.5 for a bond?

Answer 2

A 1% change in yield produces an approximate change in the price of this bond of 3.5%.

Effective duration refers to price sensitivity in response to a change in yield. A 1% change in yield produces an approximate change in the price of a bond. Duration represent an approximate price-yield relation because the relation follows a curve, not a straight line. In fact, this curve is convex (toward the origin).

Question 3

What are the 4 overarching ethical principles in the IMA Statement of Ethical Professional Practice?

Answer 3

Honesty

Fairness

Objectivity

Responsibility

Question 4

What are the 4 standards of professional practice outlined in the IMA Statement of Ethical Professional Practice?

Answer 4

Competence

Confidentiality

Integrity

Credibility