Page 100 - CAPE Financial Services Syllabus Macmillan_Neat
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29. The beta for the common stock of Forever Inc. and Alowoa Inc. is 0.90 and 1.80
respectively. If the expected return on the market is 10%, and the risk-free rate is 6%,
according to the capital-asset pricing model (CAPM), the required return on common stock
for the two companies should be
(A) 3.6%; 7.2
(B) 9.0; 18.0
(C) 9.6; 13.2
(D) 14.0; 13.0
30. Which of the following risks is diversifiable?
(A) Total risk
(B) Systematic
(C) Portfolio risk
(D) Unsystematic
31. Which of the stages in the Money Laundering Process is associated with the concealment
of funds?
(A) Layering
(B) Integration
(C) Placement of funds
(D) Both Layering and Integration of funds
32. Which of the following organization’s main objective is concerned with the prevention of
money laundering?
(A) IMF
(B) WTO
(C) FATF
(D) World Bank
33. Which of the following can be considered activities of due diligence against money
laundering?
(A) Stop orders
(B) One-off monitoring
(C) Customer due diligence
(D) Over simplified due diligence
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