In: Finance
True or false;
1) Certified Financial Planners typically manage institutional portfolios.
2) A major goal of corporate financial management is to increase the value of the firm to investors.
3) Stringent regulations and vigorous enforcement have all but eliminated unethical behavior by financial professionals in recent years.
4) Insurance companies invest the premiums and fees collected from customers in order to neutralize the risks assumed from their clients.
5) Chartered Financial Analyst (CFA) is a degree offered by several prestigious business schools.
1. Certified Financial Planners typically manage institutional portfolios - False
It is whole entity means a bank, insurance companies, mutual funds trustees, financial institutions or financial board exchanges who manages the institutional portfolios based on the rules and regulations given by government to the exchanges
2. A major goal of corporate financial management is to increase the value of the firm to investors - True
Yes, normally the core work of the financial management is to provide best services increase client portfolios by creating the value to the firm.
3. Stringent regulations and vigorous enforcement have all but eliminated unethical behaviour by financial professionals in recent years - False
The above condition is false as unethical behaviour by financial professionals is not eliminated in recent years, the global standardization for chartered financial is very strict and if found any unethical behaviour between organizations or clients that it is punishable or jail. It can applicable for individuals or organizations.
4. Insurance companies invest the premiums and fees collected from customers in order to neutralize risks assumed from their clients - True
Yes, Insurance majorly invest in securities markets as the return is highly expected from markets and also in governments bonds and schemes to minimize risks of their capital. As insurance companies pay some return on investments to customers, they earn higher return in securities markets to avoid the risk of claims and settlements on huge volume at once.
5. Chartered Financial Analyst (CFA) is a degree offered by several prestigious business schools - False
The authority to offer Chartered Financial Analyst (CFA) degree only to CFA institute, so as to avoid the mis practise in financial standards globally and creating only unique standardized and equal practices among globally CFA institute offer the CFA degree