62 13.28 +14.3% 26.6 30.1 +13.2% JARDINE MATHESON 23.94 26.7...

11.62 13.28 +14.3% 26.6 30.1 +13.2% Jardine Matheson 23.94 26.71 +11.6% 25.3 27.6 +9.1% UOB 12.73 14.07 +10.5% 23.9 26.8 +12.1% Total 56.41 63.39 157.0 178.2 Goldsboro has four large, institutional clients who indicated that they might invest a total of US$240 million in a fund indexed to the GSI. These clients are very cost sensitive. Goldsboro already offers two mutual funds that consist of stocks that are part of the Straits Times Index (STI), a value-weighted index of the 30 largest firms traded on the SGX. Exhibit 2 provides information about these two funds (GB1 and GB2), the STI index, and all stocks traded on the SGX. Exhibit 2 Comparison of Goldsboro’s 2 Funds, the STI, and the SGX Fund GB1 Fund GB2 STI SGX Number of stocks 12 12 30 612 Average market cap $12.4 billion $13.2 billion $13.7 billion $2.7 billion Dividend yield 1.5% 2.1% 1.6% 0.8% P/E 21.7 16.8 21.4 24.7 P/B 2.6 2.1 2.7 2.9 Projected EPS growth rate 11.0% 8.4% 11.2% 13.7% 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 also offers three independently-managed funds, GB-STI-1, GB-STI-2, and GB-STI-3. The three funds are benchmarked against the STI index. For the year 2009, Jason Briggs, a client whose Singapore benchmark is the MSCI Singapore Free Index, pursued a core-satellite approach by investing in these three funds, earning a return of 12.4%. Information about these three funds, their returns, and Briggs’ investments is found in Exhibit 3. Exhibit 3 Briggs’ Investments in Goldsboro’s STI-benchmarked Funds GB-STI-1 GB-STI-2 GB-STI-3 Fund expected alpha 5% 2% 0% Fund expected tracking risk 9% 5% 0% Briggs’ investment $20 million $20 million $10 million Return during 2009 15% 10% 12% In 2009, the return on the MSCI Singapore Free Index was 11.7% and the return on the STI Index was