1. Which of the following statement is incorrect about the real effects of hedge fund activism?

	A.	Plants sold after intervention improve production significantly under new ownership.
	B.	A typical target firm increases research and development (R&D) expenditure.
	C.	Patents sold post hedge fund intervention receive a significantly higher number of citations relative to their own history and matched peers.
	D.	Hedge fund activists target firms engaging in empire building and improving their future acquisition and divesture strategy.

2. Which of the following statement is incorrect about index funds?

	A.	They are likely to overinvest in stewardship.
	B.	The Big Three managers obtain substantial revenues from administering and managing the defined contribution plans of many of their portfolio companies.
	C.	Investment managers of index funds receive fees that are a tiny fraction of assets under management (AUM).
	D.	The percentage of corporate equity ownership held by index funds is rising.

3. What are the safeguards that provide shareholders protection against the risk of expropriation by holders of dual-class shares (DCS)?

I. Mandatory time-based sunset provisions

II. Maximum voting differentials

III. Minimum equity holding requirement by DCS holders

IV, Automatic conversion to one-share one-vote upon the retirement of DCS holders

	A.	I, III, IV
	B.	I, II, III
	C.	I, II, III, IV
	D.	II, III, IV

4. What changes have been made to the U.K. Stewardship Code in 2020?

I. Separate principles for each group (asset managers, asset owners, and service providers).

II. Annual report requirement for signatories.

III. Greater emphasis on environmental and social issues.

IV. Stewardship responsibility expanded to asset classes other than listed equity.

	A.	I, II, III
	B.	I, III, IV
	C.	II, III, IV
	D.	I, II, III, IV

ALL EXPLANATIONS ARE NEEDED!!!