The Code of Ethics establishes the framework for ethical decision making in the investment profession.

Marginal revenue is less than marginal cost. Thus the monopolist should produce less. At a lower quantity, price can be increased.

Net sales total $490,000 ($505,000 - $15,000). The net sales divided by the average accounts receivable equals the accounts receivable turnover rate: ($490,000/$42,000) = 11.67.

The spot rate is nothing more than all of the forward rates multiplied together taken to the nth root. While the calculation appears more difficult than it actually is, there are a number of areas that can potentially trap some candidates. For example, each spot rate needs to be annualized and needs to be divided by two in order to get the effective period rate. Also, after all of the forward rates have been multiplied by each other (being sure to add "1" to each rate before multiplying) it is important to take the nth root (depending on the number of periods) and to subtract "1" afterwards. The detailed calculation is shown below:
(((((1+0.040728/2) 2 x (1+0.0535/2))(1/3))-1) x 2 = 0.044977.
(Note: If the candidate would prefer to see the number in "percentage" form it is necessary to multiply by
"200" rather than by "2")