IF U.K. INTEREST RATES INCREASE BY 50 BASIS POINTS, THE PERCENTAGE...

54. If U.K. interest rates increase by 50 basis points, the percentage change in the value of the German bonds that Kapoor is evaluating will be closest to: A. 3.23%. B. 4.85%. C. 6.47%. 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. Sing-Siew Lee Case Scenario Sing-Siew Lee is a senior consultant with Stowe Partners, a firm that provides GIPS compliance and verification services. Lee is preparing to meet with two clients, Orion Advisory Research and Gardere Associates. Orion Advisory Research Orion Advisory Research is an investment firm that manages retail and institutional accounts. Orion also manages a private equity fund. Orion has provided information on its measurement and reporting practices in order to help Lee evaluate the firm’s compliance with the Global Investment Performance Standards (the GIPS

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standards). Trading Expenses Commissions are negotiated and deducted when calculating rates of return. For separately managed retail accounts that have bundled fees, the gross return is reduced by the entire amount of the bundled fee. Custody fees for certain off-shore securities are charged on a per-transaction basis and are included in trading expenses. Asset Valuation Orion values its investments at the lower of cost or book value. Trade date accounting is used consistently for all transactions. In some cases, transactions may be recorded up to three days after the trade date. Private Equity Orion values the private equity fund on an annual basis and presents the following multiples: 1) total value to since-inception paid-in capital, 2) since inception distributions to since-inception paid-in capital,