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NEW QUESTION: 1



A. Option C
B. Option A
C. Option B
D. Option D
Answer: B

NEW QUESTION: 2
According to the AIMR-PPS, performance must be calculated
A. after the deduction of trading expenses.
B. before or after the deduction of trading expenses, without the need for disclosures because there will be no difference in the numbers.
C. before the deduction of trading expenses.
D. before or after the deduction of trading expenses, as long as that information is disclosed.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Performance must be calculated after the deduction of trading expenses (e.g., broker commissions and SEC fees), if any. This is a requirement for calculation of returns.

NEW QUESTION: 3
Which of the following steps in conducting a risk assessment should be performed FIRST?
A. Evaluate key controls
B. Identity business assets
C. Identify business risks
D. Assess vulnerabilities
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Risk assessment first requires one to identify the business assets that need to be protected before identifying the threats. The next step is to establish whether those threats represent business risk by identifying the likelihood and effect of occurrence, followed by assessing the vulnerabilities that may affect the security of the asset. This process establishes the control objectives against which key controls can be evaluated.