ARE MINK’S RESPONSES TO PETERS’ PROPOSED STRATEGY MOST LIKELY CORR...

42. Are Mink’s responses to Peters’ proposed strategy most likely correct? A. Yes. B. No, because Reason 1 is incorrect. C. No, because Reason 2 is incorrect. 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. Alan Severn Case Scenario Alan Severn, a portfolio manager at Morgan Capital, a British institutional asset manager, is meeting the investment committee for Cotswold Industries’ pension plan. Cotswold, based in the United Kingdom and a client of Morgan, has traditionally been conservative, and the pension plan’s portfolio is currently invested in U.K. stocks and bonds. Cotswald would like to evaluate the addition of a diversified U.S. stock index to the existing portfolio. In order to help the investment committee with its evaluation, Morgan has provided the data in Exhibit