說(shuō)明2017年歷年mock2009-二級(jí)mock

MachariaCaseWilsonMacharia,CFA,alawyerspecializingintrustsandestateplanning,actsasaprofessionaltrusteeonbehalfofseveralpensionfundsthatrequirelegalexpertise.Healsoprovidesinputsontheinvestmentprocessandmonitorstheperformanceofthefunds.MachariaoftencarriesouttrainingseminarstodiscusspertinentissuesconcerningtrustlawandtrusteeDuringarecenttrainingseminarwithtrusteesof nsionfund,MachariaoutlinedwhathethoughtwerethemostimportantparametersofthenewPrudentInvestorRule:Parameter DiversificationisonlyrequiredifappropriatetoachievetheParameter2: Trusteesmustconsiderfees,costs,andotherexpenseswhenmakinginvestmentdecisions.Parameter3: Trusteesnolongerneedtobalancecurrent eandgrowthwhenmakinginvestmentjudgments.MachariawentontodiscussthedifferencesbetweentheoldPrudentManRuleandthenewInvestorRuleasshowninExhibitExhibit1:ChangesinPrudentOldPrudentManNewPrudentInvestorAEachinvestmentwithinportfoliomustmeettheprudencetestTheportfolioasawholemustmeettheprudencetestBAtrusteeisrequiredtoperformdutiesallyAtrusteemaydelegatedutiestoCInvestmentsinmutualorindexfundsareseenasAllinvestmentsareallowed,aslongastheyareactivelymanagedMachariasubsequentlyhighlightedthefollowingcaseAverylargepensionfundwithnocurrentexposuretotherealestatemarketwantedtodevelopacommercialbuildingtohouseitsadministrationdepartmentandtorenttheremainingspacetothirdparties.Thetrusteesestimatedthecommercialbuildingwouldearnaninvestmentreturnhigherthanthefund’shistorical10-yearreturn.Thetrusteesrecognizedthatalthoughcommercialrealestateisriskierthanotherportfolioassets,ithasalsodisplayedverylowcorrelationswithotherportfolioassets.Thetrustees,withnorealestateinterestsoftheirown,consultedwithrealestateexpertstodeterminethesafetyofrealcapitalvalueandthelikelihoodofcompetitivetotalinvestmentreturns.Theyalsoconfirmedwithpensionconsultantstoensuretheinvestmentwouldbeasuitableinvestmentgiventhefund’sobjectives,thefund’srisktolerances,andtheinterestsofallthebeneficiaries.Oneofthenewtrustees,aqualifiedcivilengineerwhohasbeenemployedbydevelopersinthepast,edcostswouldriseconsiderablyasaresultofpoorestimatesprovidedbythepotentialdevelopers.Hedidnotmentionhisconcernsbecausethispositionwashisappointmentasatrustee.Thetrusteesapprovedtheprojectandappointedoneofthedevelopersthathadbidfortheprojecttobuildthecommercialbuilding.Atoftheseminar,MachariareceivedthefollowingquestionsfromtheQuestion1: Iamatrusteefor nsionfund.Thoftrusteesplanstoreplaceourcurrentno-loadbalancedunittrustwitha2%front-endloadunittrustwiththesameobjectivesandrisk.Theunderlyinginvestmentsprovidingcurrent estreamsandgrowthopportunitiesarealmostidenticalineachoftheunittrusts.Aformeremployeeofthepensionfundjuststartedmanagingmoney,sowewanttosupporthimbymoving100%ofourinvestmentportfoliotohisbalancedunittrust.Ourcurrentmanagerhasbeeninbusinessformanyyearsandconsistentlyhasatopquadrantperformancehistory.Byswitchingmanagers,wouldwebeinviolationofthenewPrudentInvestorRule?Question2: Iamatrusteeforatrustwitharemainderbeneficiary.Theremaindermanhassuedmeonthebasisthatthetrustsufferedasignificantlossduringtheglobalfinancialcrisis.AlthoughIamexperiencedinassetmanagement,Idelegatedtheassetmanagementtoawell-establishedassetmanagerbecauseIdidnothavethetimetoundertaketherole.Iappointedthemanagerafterathoroughduediligenceprocesstodetermineskillsandhistoricalperformance.Thefundhasalwaysmettheobjectivesandriskprofileofthetrust,consideringboththeinterestsofthe ebeneficiaryandtheremainderman.Inmyquarterlymeetingswiththeassetmanager,Icanseethathecontinuestoconsistentlyoutperformotherfundsandatlowerfees.HaveIdoneanythingwrong?Question3: Ifthebeneficiaryofatrustisemployedinahighlypaidjob,asatrusteestillneedtoconsiderthekeyfactorsofliquidityandregularityof WhichofMacharia’sparametersmostaccurayreflectsoneoftheprinciplesofthenewPrudentInvestorRule?ParameterParameterAnswer=B“Prudencein,”JohnTrainandThomasA.MelfeSection4UnderthenewPrudentInvestorRule,atrusteehasadutytoavoidfees,transactioncosts,andotherexpensesthatarenotjustifiedbytheobjectivesoftheinvestmentWhichfeatureinExhibit1leastlikelyidentifiesthedifferencesbetweentheoldandnewPrudentRules?FeatureFeatureAnswer=C“Prudencein,”JohnTrainandThomasA.MelfeSection3UnderthenewPrudentInvestorRule,previousspecificrestrictionsontypesofinvestments(e.g.,mutualfundsandunittrusts)thattrusteesmayusehavebeenabrogated.Atrusteemayinvestinanythingthatplaysanappropriateroleinachievingtherisk–returnobjectivesofthetrustandthatmeetstherequirementsofprudentinvesting,irrespectiveofthetypeofmanagementused(i.e.,activeorpassive).Inthecasestudy,whichgeneralfiduciarystandardwasmostlikely“Prudencein,”JohnTrainandThomasA.MelfeSection3Thetrusteewiththecivilengineeringqualificationwhohreviouslyworkedwithdevelopersdidnotusehisexpertiseinhelthetrusteestomakeaninformedinvestmentdecisionwhenheeddevelopmentcostswereunderestimated.Underteralfiduciarystandards,ifatrusteepossessesmorethanordinaryskill,hemustuseit.Macharia’smostappropriateresponsetoQuestion1fromtheaudienceis,becausethetrusteesarecomplyingonlywiththeoftoavoidofAnswer=【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講“Prudencein,”JohnTrainandThomasA.MelfeSection4Thetrusteesappeartohavefulfilledthedutytobeimpartialtobalancing eandcapital,asbothunittrustsare“balanced”—theyareinvestedinnearlyidenticalunderlyinginvestmentswithgrowthopportunitiesandcurrent estreams.Thetrusteeswillviolatethedutytoavoidfeesbyswitchingtoa2%front-endloadunittrustonlyonthebasisofwantingtosupportaformeremployee.Thetrusteeswillalsoviolatethedutyofdelegationbecauseitisunlikelyaprudentinvestorwouldmove100%oftheirinvestmentstoabrandnewinvestmentmanager;itcouldsignificantlyincreasetheriskfactorsfacedbythefund.Withregardtogeneralfiduciarystandards,whatisMacharia’smostappropriateanswertoQuestion2fromtheaudience?No,compliancewithtrusteedutiesisnotjudgedinNo,trusteeshaveadutytodelegateAnswer=A“Prudencein,”JohnTrainandThomasA.MelfeSection4Atrustee’scompliancewithhisduties(i.e.,care,skill,andcaution)isjudgedasofthetimeaninvestmentdecisionismade,notwiththebenefitofhindsightorsubsequentdevelopmentsoronthe eofhisinvestmentdecisions.Macharia’smostappropriateanswertoQuestion3fromtheaudienceNo,withregardtoNo,withregardtoregularityof Answer=B“Prudencein,”JohnTrainandThomasA.MelfeSection6Evenahighlypaidbeneficiarymaystillrequirehighlevelsofliquidity(e.g.,ifhisorherdebtlevelishigh,liquiditywouldbeneededtomakedebtpayments),anditwouldalsobepertinenttoconsiderthefinancialstabilityoftheemployertodeterminethelikelihoodthatthe estreamfromhisorherwageswillberegular.Therefore,itisstillnecessaryforthetrusteetoassessthekeyfactorsofliquidityand eregularityforahighlypaidbeneficiaryAnaKondaInvestmentect.Managers(AIM)managesprivateclientportfoliosforhigh-net-worthindividualsinvestinginstocks,bonds,andcurrencies.Duringtheirweeklymeeting,themanagementteamatAIM(AdamBergman,chiefinvestmentofficer,ElenaMedeva,equitystrategist,andVenkatRajan,currencytrader)discussawiderangeofitemspertainingtoinvestmentresearchandmanagement,suchasmeasuresofeconomicactivity,countrygrowthrates,andeconomicpolicies.Afterexaminingtherecentdataonmeasuresofeconomicactivity,theteammembersmakethefollowingcomments:Rajan:Cross-countrycomparisonsofgrossdomesticproduct(GDP)shouldbebasedonthecurrentmarketexchangeratesbecausetheexchangeratemovementscorrectlyreflectthegrowthinthecountry'seconomy.Medeva:Forequityinvesting,weneedtopredictthechangeinstockmarketvalueandthatrequiresthreeinputs:expectedchangesincorporateearnings,GDP,andtheprice-to-earningsmultiple.Oftheseinputs,thegrowthrateofGDPmustdominateinthelongBergman:Fromthestandpointofour eholdings,weshouldbeveryconcernediftheexpectedGDPgrowthrateislessthanthepotentialgrowth.Inthatcase,therewillbeanupwardpressureoninterestratesandadeclineinbondBergmanthensuggeststhatformakinginvestmentdecisions,itisimportanttoassessthesteadystaterateofgrowthofacountryusingtheneoclassicalgrowthmodel.HepresentsthedatainExhibit1,whichisneededforcomputations.Exhibit1:EconomicDatabyFactorCostTotalFactor RateinLaborProductivity(%)X2Y2ZMedevasays,"I'mgladtoseethedatainExhibit1.However,IwouldbemoreinterestedinmeasuringthegrowthrateinpotentialGDPusingthelaborproductivitygrowthaccountingequation.ItwillhelpmetoconsiderincreasingequityexposuretothecountrywiththehighestgrowthrateinpotentialGDP."【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講Rajanresponds,"Itoolikeexaminingacountry'ssteadystaterateofgrowth,butIprefertogodeeperbyexaminingtheimpactofvariousfactorsonacountry'seconomyfromthestandpointoftheneoclassicalmodel.Basedonmyreadingsand ysisofthemacro-economicdata,IcameupwiththefollowingconclusionsforthethreecountrieswhereweholdsignificantCountryX:Itisexperiencingahigherlevelofcapitalaccumulationandarapidincreaseinbusinessinvestment.Takentogether,thesetwodevelopmentsindicateahighergrowthrateofoutputandpotentialGDP.CountryY:Its ernmentisinvestinginadvancedtechnologiesandinitiatingmeasurestoachievegrowthintotalfactorproductivity.Eventhoughthecountryisexperiencingdiminishingmarginalreturnstocapital,IbelieveitwillbeabletosustaingrowthinpercapitaGDP.CountryZ:Itsdatashowincreasingtrendsintherateofsavings,growthrateofthelaborforce,andthedepreciationratethat,Ibelieve,willresultin rmanentimprovementinthegrowthrateofoutputperworker.Next,Bergman mendsthatAIMshouldincreaseholdingsinthecountrythatoffersthehighestrealinterestrateaccordingtotheinternationalFishereffect.HepresentsthedatainExhibit2forconductingtheysis.Exhibit2:InflationandInterestRateDatabyInterestRateRateXY8ZMedevastates,"Beforeconcludingourmeeting,wemustevaluatethedirectionofmonetarypoliciesinCountries,X,Y,andZ.Asanexample,letususethedatainExhibit3forCountryZandapplytheTaylorRuletodeterminetheappropriatepolicyrate."Exhibit3:EconomicDataforCountryCurrentinflationCurrentlevelofNeutralrealpolicyinflationrateTaylorRule:i=rn+π+α(π–π*)+?(y–Inregardtothemeasuresofeconomicactivity,thecommentbywhichoneoftheresearchteammembersismostaccurate?Answer=CCFALevel"EconomicGrowthandtheInvestmentDecision,"PaulKutasovicSections2.7,3Medeva'scommentismostaccurate.ThepercentagechangeinstockmarketvalueequalsthepercentagechangeinGDPplusthepercentagechangeintheshareofearnings(profit)inGDPplusthepercentagechangeintheprice-to-earningsmultiple.Overshorttoimmediatehorizons,allthreeofthesefactorscontributetoappreciationordepreciationofthestockmarket.Inthelongrun,however,thegrowthrateofGDPmustdominate.Asnoted,theratioofearningstoGDPcannotriseforever.UsingthedatapresentedinExhibit1,CountryX'ssteadystaterateofgrowthisAnswer=CCFALevel“EconomicGrowthandtheInvestmentDecision,”PaulKutasovicSection5.2.1Steadystateofgrowth=ΔY/Y=θ/(1–α)+n,【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講 =growthrateofTFP(inthiscase,(1–α)=laborcostintotalfactorcost(inthiscase,0.689) =laborforcegrowth(inthiscase,2%)ForCountryX:ΔY/Y=2.25/0.689+2=UsingtheapproachsuggestedbyMedevaandthedatainExhibit1,whichofthethreecountriesmostlikelyindicatesthehighestgrowthrateinpotentialGDP?CountryAnswer=ACFALevel“EconomicGrowthandtheInvestmentDecision,”PaulKutasovicSection4.3Usingthelaborproductivitygrowthaccountingequation,CountryZindicatesthehighestgrowthrateinpotentialGDP.GrowthrateinpotentialGDP=Long-termgrowthrateoflaborforce+Long-termgrowthrateinlaborproductivityForceGrowthPotentialGDPXYZWhichofRajan'sconclusionsregardingtheneoclassicalmodelismostaccurate?HisconclusionspertainingtoCountry:Answer=CFALevel“EconomicGrowthandtheInvestmentDecision,”PaulKutasovicSection5.2.1Rajan’sconclusionspertainingtoCountryYaremostconsistentwiththeneoclassicalmodel.Becauseofdiminishingmarginalreturnstocapital,theonlywaytosustaingrowthinpotentialGDPpercapitaisthroughtechnologicalchange rowthintotalfactorproductivity.Thischangeresultsinanupwardshiftintheproductionfunction—theeconomyproducesmoregoodsandservicesforanygivenmixoflaborandcapitalIfBergman's mendationisfollowed,AIMwillmostlikelyincreaseitsholdingsinAnswer=CFALevel“CurrencyExchangeRates:DeterminationandForecasting,”MichaelR.RosenbergandWilliamA.BarkerSectionCountryZhasthehighestrealinterestrateaccordingtotheInternationalFishereffect.TheFishereffectbreaksdownthenominalinterestrate(i)inagivencountryintotwoparts:(1)therealinterestrateinthatparticularcountry(r)and(2)theexpectedinflationrate(π?)inthatcountry.i=r+π?,wherer=Currentnominalinterestrateandπ?=Expectedinflationr=i?6.85–3.958.00–5.255.67–2.67IfCountryZfollowstheapproachstatedbyMedevainconductingitsmonetarypolicy,itspolicyrateshouldbeclosestto:Answer=“CurrencyExchangeRates:DeterminationandForecasting,”MichaelR.RosenbergandWilliamA.BarkerSectionTheTaylorruletodeterminetheappropriatepolicyratei=rn+π+α(π–π*)+?(y–y*) =theTaylorruleprescribedcentralbankpolicy =theneutralrealpolicy =thecurrentinflation =thecentralbank’sinflation =thelogofthecurrentlevelof =thelogoftheeconomy’spotential/sustainablelevelofαand?=thepolicyresponseTaylorproposedthatalphaandbetaeachequali=2.75+2.67+0.5(2.67–3.27)+0.5(3.50–4.00)=2.75+2.67–0.30–0.25=【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講AlbertStrong,ajuniormetals ystatGoodsonFunds,wasreviewingthehistoryofAdOre ruviangoldminingcompany.Cupernico,Inc.,StrawberryMinesCorp.,andGlace,S.A.,wereglobalgoldminingcompanies.CupernicoandStrawberrywerebothheadquarteredintheUnitedStatesandcompliedwithUSGAAP.GlacewasaFrenchcompanythatfollowedInternationalFinancialReportingStandards(IFRS).Allcompanies’fiscalyearsendedon31On1January2011,thethreecompaniescombinedtheirPeruvianoperationsintoaseparatecompany,AdOreVentures.ThefairvalueofassetscontributedbyeachcompanywasinproportiontoitsownershiasshowninExhibit1.CupernicowasconsideredtohavecontroloverAdOrebecauseofitsownershiandrepresentationonAdOre’sboardofdirectors.BothStrawberryMinesandGlacewereconsideredtohavesignificantinfluence.Atthetimetheoperationswerecombined,thefairvalueofeachcompany’sassetswasequaltotheirrespectivereported(book)values.Cupernico:StrawberryMines:Glace:On1January2012,GlaceacquiredStrawberryMines.GivenAdOre’srelativelybriefoperatinghistory,GlacedeterminedthatthefairvalueofassetsremainedequaltothevalueatwhichtheywerecarriedonAdOre’sbooks.BecausethemergerleftGlaceandCupernicowithequaleconomicinterestsinAdOre,thetwocompaniesnegotiatedajointcontrolagreement.SelectedfinancialdatarelatedtoAdOreispresentedinExhibit2.BecausegoldpricesaregloballyinUSdollars,AdOre’sfunctionalcurrencyistheUSExhibit2:SelectedFinancialResultsfor($ Annualdividend(paidon31CashflowfromLong-termdebt(31Beginningequity(1Endingequity(31Strongwonderedhowthe2012mergermighthaveaffectedCupernico’sfinancialstatementsandratios.Hecompareditsactualratioswithwhattheywouldhavebeenhadthemergernottakenplace.On1January2013,anticipatingmuchhighergoldpricesinthefuture,KinkaidGoldpurchased80%ofAdOre’ssharesinexchangeforitsownshares.KinkaidGoldcomplieswithIFRS.Itrecognizesgoodwillusingthepartialgoodwillmethod.DetailsoftheacquisitionareshowninExhibit3.Exhibit3:DetailsofAcquisitionofAdOrebyKinkaidGold,1JanuaryPercentofsharesFairvalueofAdOre’snetassets($FairvalueofAdOre’sidentifiablenet($BookvalueofAdOre’snetassets($Note:ThedifferencebetweenthefairvalueandbookvalueofAdOre’snetassetsisbecauseofitsinventorybeingunderstatedaswellasapatentforanewgoldextractiontechniqueforlow-gradeores.Inmid-August2013,thepriceofgoldhadfallenalmost25%sincethebeginningofyear.GoodsonFunds’goldforecastwasforpricestofallanother10%byof2013,buttheyexpectedafullrecoveryandsubstantiallyhigherpricesbyof2015.Fortheyear2011,themostappropriatemethodflacetousetoaccountforitsinvestmentinAdOrewas:fairvaluethroughprofitandavailablefortheequityAnswer="IntercorporateInvestments,"SusanPerryWilliamsSections2,5In2011,althoughGlacehadlessthan20%ownershiinAdOre,itwasconsideredtohavesignificantinfluence,whichrequiredtheequitymethod.【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講Onits2011 estatement,theamountofAdOre'snet ethatStrawberryMinesreportedwasclosestto(inthousands):Answer="IntercorporateInvestments,"SusanPerryWilliamsSection5.1In2011,StrawberryMinesusedtheequitymethodbecauseitexercisedsignificantinfluenceandowned32%ofAdOre.Undertheequitymethod,itshouldrecognizeitspercentageshare(32%×18,182=5,818.2)ofAdOre'snet In2011,StrawberryMines'shareofthedividendsreceivedfromAdOrewasmostreportedasadditionto deductionfromitsinvestmentinadditiontoother Answer=BCFALevel"IntercorporateInvestments,"SusanPerryWilliamsSection5.1In2011,StrawberryMinesowned32%ofAdOre'sstockandhadsignificantinfluence;therefore,itshouldhaveusedtheequitymethod.ItwillnotreportanydividendsreceivedfromAdOreas ebutwouldhavedeductedthedividendsreceivedfromthecarryingvalueoftheinvestmentinAdOre.Whichofthefollowingamounts(inthousands)fromAdOrewouldmostlikelybeincludedonthe2011financialstatementsofCupernico?$23,689of$31,773of$40,000oflong-termdebtAnswer=C"IntercorporateInvestments,"SusanPerryWilliamsSection6.4In2011,CupernicohadacontrollinginterestinAdOreandwouldhaveusedtheconsolidationmethod.Inconsolidation,companiescombinealloftheassets,liabilities,revenues,andexpensesofsubsidiarieswiththeparent.Therefore,Cupernicowouldhaveincluded$40,000(100%)ofAdOre'slong-termdebt.ThebestconclusionStrongcanmakeabouttheeffectoftheownershipchangeofAdOrein2012wasCupernicoreportinga:lowerreturnonassetshigherreturnonequitylowernetprofitAnswer="IntercorporateInvestments,"SusanPerryWilliamsSections5.1,6.5In2012,CupernicoandGlacesharedjointcontrol.CupernicomustusetheequitymethodunderUSGAAP;iftheownershipstructurehadnotchanged,Cupernicowouldhavecontinuedtousetheconsolidationmethod.Equity(Joint eIncludes50%ofAdOre’snet asinvestmenteOncenon-controllingneteffectisthat50%ofAdOre’snet eisAdOre’splusLowerunderNetprofitmargin=methodbecauseoflowerrevenues(afterthechange)IncludesCupernico’sinterestofAdOreLowerunderROE=methodbecauseoflowerequityTotalIncludes50%ofnetassetsofAdOreasIncludes100%ofLowerunderROAmethodbecauseoflowerassetsThevalueofthegoodwillrecognizedbyKinkaidGoldinits2013acquisitionofAdOreclosestto(in$Answer=【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講"IntercorporateInvestments,"SusanPerryWilliamsSection6.2.5for80%Minus80%offairvalueofidentifiablenetassets80%×goodwillmethod【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講JimLorisistheFoodand ystatEasternTrust&Investments.JeremyPaulisinternunderLoris’ssupervision.LorisisplanningonreviewingthefinancialstatementsofAtlanticPreserves,Inc.,inthenextfewdays.Thecompanyhasrecentlysignedanewcollectiveagreementwithitsworkers,andLorisisinterestedinseeinghowthecompany’semploymentcostshavebeenaffected.ThecompanypreparesitsfinancialstatementsinaccordancewithUSGAAP,andthenewcollectiveagreementbecameeffective1January2014.PaulextractsportionsofthenewcollectiveagreementrelatedtothepensionplanandmentionstoLoristhattherehavebeentwochangesrelatedtotheplan:Thebenefitformulahasbeenchangedto1.75%×Finalyear’ssalary×Numberofyearsofserviceundertheplan.Previously,thesameformulawasused,butwithafactorof1.65%.ThevestingperiodhasbeenchangedfromfouryearstothreePaulmakesthefollowinocommentsaboutthesechangestothepensionThenewformulawillhaveabigimpacton ebecausethepastservicecoststhatarisewillbeexpensedimmediay.ThechangetoashortervestingperiodwillgiverisetoanactuarialLorisresponds:“ThepastservicecoststhatarisewillbereportedinothereandamortizedontheprofitandlossstatementovertheaverageservicelivesofLorisprovidesPaulwiththeinformationinExhibit1aboutJohnSmith,anemployeewhohasjuststartedworkingforAtlantic,andotherinformationtakenfromthecompany’spensionplandisclosures.LorisasksPaultocalculatethepensionliabilityarisingfromSmith.Exhibit1:AssumptionsRelatingtotheLiabilityArisingfromJohnSmith’sEmployeeAnnualwageCurrentDate1-Jan-PensionPlanBenefit31-Dec-Annualpaymentsarepaidatyearendandcontinuefortheremainderoftheretiree’slifeEstimatedfinalFollowinghiscalculationofthepensionplanliability,PaulasksLoristwoquestionsaboutthediscountratethatisused: Exhibit1doesnotmentionhowyoudeterminedthediscountratethatwasused.Whatrateisthemostappropriateratetouse?Whatwouldbetheeffectofusingahigherdiscountrateonvariouscomponentsofcompany’spensionplanLorisanswersPaul’squestionsandthenprovideshimwithselectedinformationfromNoteFofthe2013AnnualReportofAtlanticPreserves,showninExhibit2.He lsPaulthatheisawarethatthecompany’sactualreturnonpensionplanassetsexceedsitsexpectedreturnandasksPaultousetheinformationinExhibit2tocalculatethenetperiodicpensioncostandthetotalperiodicpensioncostforAtlanticfor2013.Exhibit2:SelectedInformationfromNoteFofAtlantic’s2013AnnualFinancial($Start-of-yearpensionStart-of-yearplanEnd-of-yearpensionEnd-of-yearplanCurrentserviceActualreturnonplanExpectedreturnonplanBenefitspaidtoretiredEmployer’sAmortisationofpastserviceInregardtoLorisandPaul'sdiscussionaboutthechangesinthepensionplanarisingfromthenewcollectiveagreement,whichcommentismostaccurate?Paul'ssecondcommentabouttheactuarialLoris'responseaboutpastservicePaul'scommentabouttheimpacton Answer=B"EmployeeCompensation:Post-EmploymentandShareBased,"ElaineHenryandElizabethA.GordonSection2.1,2.2,Loris'responseaboutthepastservicecostsismostaccurate.Pastservicecostsarisebecauseoftheenrientofthepensionbenefittobereceivedundertheplan.UnderUSGAAP,anypastservicecostswillbereportedinothercomprehensive eandareamortizedontheprofitandlossstatementovertheaverageservicelivesoftheemployees.UnderIFRS,thepastservicecostsarerecognizedasanexpenseinthee【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講 ofSmith'ssecondyearofservice,theestimateddefinedbenefitobligationarisingfromhisemploymentisclosestto:Answer=“EmployeeCompensation:Post-EmploymentandShareBased,”ElaineHenryandElizabethA.GordonSection1.DeterminationofannualunitcreditEstimatedfinalsalary(ExhibitEstimatedannual(endofyear)paymentinretirement(sixyearsofservice,2014–2019):$71,261×1.75%×Presentvalueofestimatedfuturepaymentsasofthestartofretirement(keystrokesusingafinancialcalculator):PVof7,482.41for25yearsat7.5%(N=25,I=7.5,PMT=7,482.41Mode:End;PV=?)Annualunitcreditattimeofretirementperservice2.Determinationofbuild-upofpensionobligationfortheCalculationforCalculationforOpening0FromcloseofInterestcostat0$9,683xValueoftheunitcreditClosingThebestanswertoPaul'squestionistousecompany'sbefore-taxcostofyieldonhighqualitycorporatecompany'soverallcostofAnswer="EmployeeCompensation:Post-EmploymentandShareBased,"ElaineHenryandElizabethA.GordonSections2.2,2.3.3,Theyieldonhighqualitycorporatebondsistheappropriatediscountratethatshouldbeusedtocalculatethepresentvalueofthefuturebenefitsbecauseitrepresentstherateatwhichthedefinedbenefitobligationcouldbeeffectivelysettled.TheleastappropriateanswertoPaul'ssecondquestionisthatcurrentservicecostwouldinterestcostmayeitherincreaseorAnswer="EmployeeCompensation:Post-EmploymentandShareBased,"ElaineHenryandElizabethA.GordonSectionThecurrentservicecostwilldecrease,notincrease.Ahigherdiscountratemeansthatthepresentvalueofthefuturebenefitsearnedinretirementwillbelowerandthustheannualunitcreditwillbelower.Therefore,thecurrentservicecostwilldecrease.TheamountofAtlanticPreserve's2013periodicpensioncost(in$thousands)isAnswer="EmployeeCompensation:Post-EmploymentandShareBased,"ElaineHenryandElizabethA.GordonSection,ExhibitUnderUSGAAP,theperiodicpensioncostiscalculatedas$InterestcostontheLessexpectedreturnonplanPlusamortizationofpastservicePeriodicpension【夢(mèng)軒考資 專業(yè)提供CFAFRM全程+講AtlanticPreserve'stotalperiodicpensioncost(in$thousands)for2013isclosestAnswer=“EmployeeCompensation:Post-EmploymentandShareBased,”ElaineHenryandElizabethA.GordonSectionThetotalperiodicpensioncostisthechangeinthenetpensionassetorliabilityexcludingtheeffectoftheemployer'speriodiccontributiontotheplan.($PensionEndofLessstartofNetchangeinfundedstatus(decreaseinnetLessdecreaseinLessactualreturnonplanaAnetpensionliabilityisanegativefundedbTotalperiodicpensioncostrepresentsthedecreaseinthenetpensionliabilityby$183thousandandtheemployer’scontributionof$887thousand:$887–$183=$704thousandEduardoDeMolay,aresearchystatMumbaiSecurities,isstudyingthetimeseriesbehaviorofprice-to-earningsratios(P/Es)computedwithtrailing12-monthearnings(Etrailing).Heandhisassistant,Deepaini,arereviewingtheresultsoftheordinaryleastsquarestimeseriesregressionshowninExhibit1.Exhibit1:ResultsofRegressionofP/EonLaggedP/E(P/Et=b0+b1P/Et-1+StandardtSignificanceofConstantLaggedP/E0FofF0DeMolaystates:“Thisregressionisaspecialcaseofa-orderautoregressive(AR(1))modelinwhichthevalueforb0isclosetozeroandthevalueofb1iscloseto1.Thesevaluessuggestthatthetimeseriesisarandomwalk.”inireplies,“I’mconvincedtheP/EseriesbasedontrailingearningstrulyisarandominiandDeMolaynextexaminethebehaviorofP/Escalculatedusingforward12-monthearnings(Eforward).iniestimatesanotherAR(1)modelbutusestheforwardP/Evaluesthistime.Shedenotestheerrorsfromthissecondregressionasηt.Shestates,“Thepresenceof-orderautoregressiveconditionalheteroskedasticity(ARCH(1))errorsinthisregressionishighlylikelygiventheresultsreportedinExhibit2.”ResultsofRegressionofSquaredResiduals,ηt2,onLaggedSquaredResiduals,ηt–12StandardtSignificanceofConstant0Lag10ErrorofFofF0Afterfurtherdiscussion,DeMolayproposesthatheandi ncorporatemorevariablesintotheysis.HesuggeststheyuseavariationoftheFedmodel,inwhichtheearnings-to-priceratio(E/P)isregressedonlong-terminterestrates.DeMolaycautionsini:“Rememberthatwhenweyzetwotimeseriesinregressionysis,weneedtoensurethatneitherthedependentvariableseries