WITH REGARD TO THE STRATEGIC BENCHMARK HEDGE RATIO, WHICH OF THE T...

18. With regard to the strategic benchmark hedge ratio, which of the three factors that Stam considers is least appropriate? A. Factor 1 B. Factor 2 C. Factor 3 By accessing this mock exam, you agree to the following terms of use: This mock exam is provided to currently-registered CFA candidates. Candidates may view and print the exam for personal exam preparation only. The following activities are strictly prohibited and may result in disciplinary and/or legal action: accessing or permitting access by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. Goldsboro Partners Case Scenario Goldsboro Partners, an investment management firm, intends to offer more products invested in equities traded on the Singapore Exchange (SGX). Goldsboro is developing the Goldsboro Singapore Index (GSI); a proprietary index of Singapore equities comprised of five stocks traded on the SGX with the largest market capitalization. Goldsboro must decide how to structure the GSI. Information about the prices and market caps of these firms is found in Exhibit 1. Exhibit 1 Five Largest Singapore Firms: Selected Information in US$ Market Cap Change in @1/1/2009 Price Change @1/1/2010 Market Cap (billions) in Price Firm SingTel 2.35 2.53 +7.7% 48.5 52.5 +8.2% Wilmar 5.77 6.80 +17.9% 32.7 41.2 +26.0% DBS Group