1. Alice retires today with a total savings of $1,728,355 in her bank account which earns an interest rate of 1.35% per annum, compounded monthly. Alice intends to withdraw an equal amount every month from this savings account for the next 35 years, leaving the remaining balance in the bank account. Given the above plan, what is the monthly amount that Alice can withdraw?

1. $4,115.13
2. $5,165.88
3. $6,185.66
4. $50,387.92
5. $62,289.80

2. The following table shows the expected returns and probabilities of various states of the world. What is the expected return for this company?

Modern-Easy Company

State of the Economy	Probability of State	Return on State
Boom	.25	20%
Steady	.60	10%
Recession	.15	-5%

1. 10.25%
2. 9.75%
3. 6.50%
4. -0.55%
5. none of the above

3. Which of the following statements is FALSE?

1. Profits are an accounting measure of performance during a specific period of time, while cash flow is the actual inflow or outflow of money.
2. Corporate Governance refers to the area of business that deals with how a company conducts its business and implements controls to ensure proper procedures and ethical behaviour.
3. In agency theory, the owners of the business are referred to as principals, and the managers are referred to as agents.
4. Constant growth refers to the percentage increase in the dividend being the same each year.
5. In capital budgeting, if IRR (internal rate of return) is less than the hurdle (discount) rate, accept the project.

4. Which of the following about the CFA Institute Code of Ethics and Standards of Professional Conduct is FALSE?

1. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or anothers independence and objectivity.
2. Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.
3. Members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants.
4. In the event of conflict, Members and Candidates must comply with the less strict law, rule, or regulation.
5. Members and Candidates who possess material non-public information that could affect the value of an investment must not act or cause others to act on the information.