FINC2011 Study Guide - Final Guide: Cfa Institute, Professional Ethics, Investment Banking
Document Summary
Consider the marks allocated for each question when allocating time for completion. Show all workings and carefully note any assumptions made in preparing answers. Topics: capital budgeting, capm, company cost of capital /30 marks. Allocated time: 30 minutes, 45 minutes, 45 minutes, 30 minutes. Important thing to note: ethical behaviour is not linked to conformity with the law; not the same thing = it is voluntarily conforming to what is good/right/acceptable behaviour; it is much broader than simply conforming to legal frameworks. This is quite prominent nowadays, as the choices that individuals and companies make have wider consequences for the broader industry. Keep in mind that professions also have self-interest in ensuring they are behaving in an ethical fashion. If a professional body is not seen to be behaving in ethically, they run the risk that there will be tighter regulations placed both on them and the industry.
