16 offensives in January and February

New People’s Army frustrates intensified enemy attacks

Despite the intensification of armed attacks by the security forces of the US-Arroyo regime and their repeated self-serving projections about the impending defeat of the revolutionary forces, reports coming from the battlefront reveal that the New People’s Army and the revolutionary masses continue to hold the initiative in armed tactical offensives with the enemy.

At least 18 elements of the enemy armed forces were killed and scores of others were wounded in about 16 tactical offensives and two tactical counter-offensives conducted in the last two months by various units of the NPA across the country. The Red fighters were able to seize several pistols and high-powered rifles, including an M-60 machine gun, which could be used to further increase the strength of the people’s army.

On 29 December 2007, four soldiers belonging to the 21st Infantry Battalion of the Philippine Army were killed in an ambush by Red fighters of Danilo Ben Command of the NPA-Cagayan Province, in northern Philippines. The 5th Infantry Division of the PA had been conducting offensive military operations in several towns in the provinces of Cagayan and Isabela since the start of December before they were ambushed by the NPA.

Various units of the Merardo Arce Command of the NPA-Southern Mindanao Region, in southern Philippines, were able to launch victorious tactical offensives during the second half of January 2008 without sustaining any casualty. While the bulk of the enemy’s forces – the 73rd IBPA and PA Scout Rangers – were busy in the western part of the region, the NPA inflicted blows on isolated enemy positions in the eastern side, namely Compostela Valley and Davao Oriental provinces.

In the morning of 30 January, seven soldiers belonging to the 67th IBPA and a member of the Civilian Armed Forces Geographical Unit (CAFGU) were killed while ten other soldiers were wounded in an ambush by the combined forces of Guerrilla Fronts 15 and 25, when the enemy troops were patrolling through the villages of Kinablangan, San Victor and Kampawan, in Baganga town, Davao Oriental. Seized from the enemy were an M-60 machine gun and two M-16 rifles.

In the afternoon of the same day, an intelligence operative of the 1102nd PNP Mobile Group was killed and two CAFGU elements were wounded in the village of Bukal, in Nabunturan, Compostela Valley, when they fought it out with Red fighters of Front 27. Another element of the 1102nd PNP Mobile Group was killed and ten others were wounded, this time in the village of Ngan, in Compostela, when the NPA 5th Pulang Bagani Command ambushed the reinforcing enemy troops.

On 31 January, a soldier was wounded when the NPA launched harassment operations against a detachment of the 733rd Combat Squadron of the Philippine Air Force in Clayo Village, Nasugbu town, Batangas province. Elsewhere in southern Luzon, four soldiers of the 9th IBPA and the 565th Engineering Battalion of the Philippine Army were seriously wounded when their armed convoy was ambushed by the NPA in Buenavista village, Bacon town, in Sorsogon province on 1 February. The following day, an army sergeant was killed when the NPA attacked an AFP detachment in Badian village, Oas town, in Albay province. The Red fighters seized a .45 caliber pistol from the enemy.

Meanwhile, latest reports reveal that the NPA in Samar province, in central Philippines, was able to seize 11 high-powered rifles when they raided the PNP municipal headquarters in Hinabangan town on 23 December. It was earlier reported that the Red fighters seized two HPRs and three pistols from the raid.

US and Philippine military massacre civilians in Maimbung, Sulu

In the early morning of 4 February, while the villagers were sound asleep, troops of the reactionary Armed Forces of the Philippines launched an armed attack on the fishing village of Ipil in Maimbung town, Sulu, in the southern island of Mindanao. They massacred at least eight civilians, including two children aged 4 and 9, two teenagers aged 15 and 17 and a pregnant woman, and a soldier who was on leave at that time. The military operations also caused the wounding of many other civilians and destruction of property.

The AFP tried to cover up the massacre by saying that it was a legitimate operation and that the victims were members of the terrorist Abu Sayyaf Group (ASG). The women and children who were killed, they said, died in the crossfire. The surviving victims, their families and local government officials however vehemently belied these claims of the military. They asserted that the victims were ordinary seaweed farmers and fisherfolk, and not members of the Abu Sayyaf Group.

The ASG is a creation of the AFP and the Central Intelligence Agency (CIA) in 1991 to undermine the Moro people’s struggle for self-determination. It has since turned into banditry, kidnapping for ransom and terrorism, but continues to be handled by military officers.

But what is so damning about the Maimbung massacre aside from the killing of civilians is the presence of US military forces in the area. Eyewitness and survivors’ accounts report seeing heavily armed US soldiers in the area while the carnage was going on. There were even reports that what happened in Maimbung was part of the joint military exercise between US and Philippine troops called Balikatan (shoulder-to-shoulder), a sort of practicum for the Philippine military. This is not farfetched since soldiers that attacked the Ipil village belonged to the Light Reaction Company, a unit composed of soldiers who have undergone specialized training from the US military during the joint military exercises.

The specialized US military training produced brutal results in the fishing village of Ipil: civilians were attacked; the children were shot in the head; victims’eyes were gouged out; and fingers and ears were sliced off.

This was not the first time that the US troops have taken part in AFP military operations in Sulu. In early 2007, US troops were present during an armed encounter between the AFP and the Moro National Liberation Front in Indanan town, Sulu. During that period, US military personnel were supposedly building roads in Indanan while the AFP troops were launching big military operations in the entire province.

The US use the so-called humanitarian missions of building roads, bringing relief goods and medical services to neutralize people’s resistance against its presence and to cover up the real purpose of the joint exercises. According to Command Sgt. Maj. William Eckert of the Joint Special Operations Task Force-Philippines (JSOTFP) in his article “Defeating the Idea:Unconventional Warfare in the Philippines”: “Working in close violations including extra-judicial killingscoordination with the US Embassy, JSOTF-P uses Special Forces, Civil Affairs and Psychological Operations forces to surveillance and reconnaissance in very focused areas, and based on collection plans, to perform tasks to prepare the environment and obtain critical information requirements. The information is used to
determine the capabilities, intentions and activities of threat groups that exist within the local population and to focus US forces – and the AFP – on providing security to the local populace. It is truly a joint operation, in which Navy SEALs and SOF aviators work with the AFP counterparts to enhance AFP’s capacities.”[Bulatlat.com]

The presence of US military personnel in the Philippines must be seen in the context of the US’ continuing control of the social,economic, cultural and military aspects of Philippine society, and of the Philippines as the second front in the so-called US war on terror. The Philippines is an ideal launching pad for future attacks against enemies of the US especially in Asia-Pacific and the Middle East.

The people condemn the Balikatan exercises, the presence of US troops, andUS military aid as having exacerbated the already tense and dangerous situation in the country, and in Mindanao in particular, and has led to increasing human rights and forced disappearances.

They demand a pull out of all US troops, a stop to the joint military exercises, the conduct deliberate intelligence, scrapping of agreements and treaties between the United States and the Philippines such as the Mutual Defense Treaty, Visiting Forces Agreement and Mutual Logistics Support Agreement.

Tens of thousands demand truth, join calls to oust Arroyo regime

In a convincing display of “people power” reminiscent of two previous mass uprisings that led to the ouster of two Philippine presidents, tens of thousands of protesters massed up on 29 February in Makati City, the Philippines’ financial district, to send a strong message to the murderous and corrupt Arroyo regime that its days are numbered.

The protest action dubbed as an “interfaith rally for truth”, was held to demand the truth from the latest corruption scandal involving illegitimate president Gloria Arroyo and to ask for her resignation. First Gentleman Mike Arroyo, together with other top government officials, reportedly demanded up to US$130 million in commissions in exchange for granting the National Broadband Network (NBN) project contract to China’s Zhong Xing Telecommunication Equipment Corporation (ZTE). The project was eventually shelved after news broke out about the anomalous deal, but it had not prevented the mounting protests and seething anger of the whole nation.

A cross-section of Philippine society totaling more than 50,000 converged on 29 February to demand the truth and to push for the ouster or resignation of Arroyo. Participants in the rally included workers, peasant groups, youth and students, women, businessmen, middle and upper class housewives, urban poor, church and religious groups, migrants and their relatives, artists and the political opposition including two former Philippine presidents.

Militant groups estimated the number at 75,000, while the political opposition gave an even higher estimate. It was, according to analysts, larger than expected. Youth and students from many colleges and universities composed the main bulk of the protesters.

Speakers at the rally lambasted the Arroyo regime for its corruption, and its other crimes against the people, including the extrajudicial killings and disappearances of opposition activists. And as with the previous displays of “people power”, protesters came out with their creative expressions of fighting slogans and demands. Militant groups carried a large streamer that says “Goodbye Gloria”. A Catholic nun carried a placard that says “What is evil, is evil. Period”. “Gloria, most corrupt president” says another placard, while a dog was seen with a poster on its back that says “Ow-ow-Oust Gloria!”

The resounding demand and call however was: Oust Gloria!

Ever-fearful of the fate suffered by her predecessor who was ousted by “people power”, Gloria Arroyo sought refuge at a military camp in Quezon City.

Even before this mammoth gathering, military and police loyalists of Gloria acted desperately to prevent a groundswell of people massing-up. They fed media with worn-out alleged reports of possible infiltration of the rally by the New People’s Army or by supposed terrorists. They set up blockades and checkpoints around Metro Manila to prevent rallyists from the provinces from joining the Makati protesters. They further prevented media from taking aerial shots from helicopters of the massive protest by declaring the area a “no-fly zone”.

In an official statement, Bayan (New Patriotic Alliance) said that the Makati mobilization sends a very strong message to Malacañang and other institutions of the government that the Filipino people seriously and urgently demand for truth, justice, and meaningful changes in the leadership and system of governance amid the latest political crisis that has been rocking the Arroyo regime.

Professor Jose Ma. Sison, Chief Political Consultant of the National Democratic Front of the Philippines (NDFP), in a statement on 01 March stressed that “the fake president and her retinue of bureaucratic sycophants and military bully boys should be able to read the handwriting on the wall. They have been weighed and grievously found wanting. Their days are numbered. Their doom is in the horizon.”

As Gloria Arroyo presses all her panic buttons, so to speak, the people and the organized forces are bracing for bigger mobilizations and more creative expressions of protest to force the ouster of Gloria Arroyo.

Militant migrant organizations, representing about 10 million overseas Filipinos forced to live and work abroad because of the corruption, brutality, poverty, unemployment and backwardness of Philippine society, have called for the withholding of remittances at least once a month. The remittances of migrant Filipinos help sustain the bankrupt Philippine economy and bureaucracy. Migrant Filipinos send US$30 million in remittances daily.

Meanwhile, protest rallies by Filipino migrants and foreign allies around the world were also held to show solidarity with the calls being made in the Philippines for the ouster of the Arroyo regime. In Australia and Hong Kong, migrant Filipinos and human rights advocates not only called for the ouster of the Arroyo regime but also called for “Zero Remittance Day” on 8 March. They condemned the plundering of their hard-earned money to prop-up Arroyo’s corruption-riddled government.

Rallies were also held in the cities of New York, New Jersey, San Francisco and Los Angeles in the United States, in Toronto and Vancouver in Canada, and in Amsterdam in The Netherlands. They demanded that Arroyo be held accountable for her many crimes against the Filipino people, including massive corruption and grave violations of human rights.

Danielle Galan, president of Anakbayan New York said that “corruption is a disease that robs Filipinos of a promising future. It is the same reason why our parents and fellow Filipino youth left the country to search for better lives abroad. Those who engage in it must answer to the nation’s call for accountability.”

Arroyo regime teeters on the brink of ouster

The conversation between the taxi driver and his passenger showed how desperate life has become for many Filipinos: The driver made remarks on how life has become so difficult these days. Then he said, “If only someone can assure me that they will take care of my family, I am willing to die just so I can assassinate this no-good president Arroyo.”

A social volcano is indeed waiting to erupt with the pent-up anger of the long suffering Filipino people against a cheating, stealing and lying president.

A new and yet bigger wave of calls for Arroyo’s ouster or resignation has swept the country after revelations from former government official Rodolfo Lozada, Jr. confirmed the direct involvement of Mike Arroyo, the husband of Manila president Gloria Macapagal-Arroyo, in a multi-million dollar kickback scandal in connection with a proposed National Broadband Project awarded to Chinese company Zhong Xing Telecommunication Equipment Company (ZTE).

Rodolfo Lozada, Jr. has insider knowledge of the highly anomalous deal. Gloria Arroyo’s henchmen in the Philippine National Police, military intelligence community and in her cabinet tried everything to stop Lozada from testifying before Senate committees investigating the scandal. They sent him to Hong Kong. But the guilt-stricken Lozada decided to come back to the Philippines to reveal everything he knew. While disembarking at the Ninoy Aquino International Airport, he was abducted by a unit of the Presidential Security Group (PSG) and PNP presumably upon orders of Arroyo’s top cabinet officials. But the incident came to the knowledge of journalists and subsequent outcries from the public forced the abductors to surface Lozada.

Testifying finally before the Philippine Senate, Lozada disclosed in great detail what he knew about the anomalous deal. He revealed how former Commission on Elections Chairman Benjamin Abalos, acting on instructions from Mike Arroyo, brokered a deal with the Chinese firm ZTE asking for US$130 million dollars in kickback or commission. He recounted that when the anomalous deal was exposed and subsequently shelved, he was sent to Hong Kong to escape being investigated by the Senate which had subpoenaed him to testify. He told about the harrowing ordeal he went through when he was abducted by elements of the PSG and PNP when he disembarked from the plane from Hong Kong thinking that he was going to be killed to prevent him from spilling the beans.

Reflecting the mood of the general populace, the President of the Catholic Bishops Conference of the Philippines (CBCP), Archbishop Angel Lagdameo, has called on the people to launch “communal action”. A broad spectrum of Philippine society, agitated by Lozada’s testimony, has interpreted the archbishop’s words as a call for the people to mobilize to remove Arroyo from the presidency.

The roots of discontent

Under the Arroyo regime, joblessness has grown to record levels. In 2007, conservative estimates put 4.1 million Filipinos without jobs. Since 2001, when Arroyo assumed the presidency, up to 2006, average family income has dropped by PhP20,400.

There is a great disparity in incomes with the top 20% or 3.5 million families accounting for 52.8% of the total income, while the poorest 80% or 13.9 million families taking the remaining 47.3%. The income of the top 10% is 19 times that of the poorest 10 percent. The Forbes.com estimates the net worth of the country’s 20 richest individuals of US$15.6 billion in 2006 as equivalent to the combined annual income of the poorest 10.4 million families or 52 million Filipinos. Eighty percent of families or 70 million Filipinos struggle to survive on around US$2.50 a day.

This situation has impelled the workers to fight more resolutely for a wage increase which has always been stubbornly opposed by the regime. In 2007, the average wage of workers in the most industrialized area around the capital is not even half of the actual cost of living. Poverty in the countryside is even worse.


The trade deficit in 2006 was $6.817 billion The perennial trade deficit is the result of the basic weakness of the country’s semifeudal economy which does not have an industrial base. Because of this, it imports most of its manufactured goods. Even its so-called manufactured exports are merely low-value added re-exports because as in the electronics sectors the products contain from 90%-95% imported raw materials. These re-exports actually earn very little for the local economy.

A fiscal crisis is threatening to explode on the regime’s face in 2008. The regime has been able to buy time in 2007 only because it had gone on a privatization binge unparalleled in the country’s history. In 2007 alone, PhP90.6 billion in government assets were sold to private capital which was nearly as much as the PhP93.9 billion sold in the previous 15 years spanning three administrations. Without the proceeds from privatization there would have been a PhP78.0 billion deficit.

Seemingly, the only bright spot in this grim economic horizon are the remittances of around eight up to ten million Overseas Filipino Workers (OFWs). The US$12.761 billion remittances in 2007 served to offset the US$6.817 billion trade deficit. Ironically, this has redounded to the detriment of the families back home dependent on these remittances. Partly because of the surge in dollar remittances from abroad, the peso has appreciated against the dollar. By the end of 2007, the average family dependent on OFW income lost PhP2,440 a month due to the appreciation of the peso against the dollar.

The OFW phenomenon is one clear indicator of the economy’s backwardness. Eight to ten million Filipinos are abroad because the economy has been failing to provide enough jobs for the people.

Already suffering from economic hardships brought on by the regime, a litany of shady deals and corruption scandals involving the first family has further fueled the anger of the people against the Manila president. Among these were the US$70 million payoff by German firm Fraport AG to the Office of the President for a US$425 million airport terminal expansion project; the Php400 million laundering of ill-gotten wealth from monthly kickbacks from government corporations; the diversion of PhP728 million in fertilizer funds for the campaign kitty of Gloria Arroyo in the 2004 presidential elections; US$50 million in “commissions” for the overpriced North Luzon Railways Project; the 5.1 kilometer Diosdado Macapagal Boulevard whose PhP1.1 billion cost was reportedly overpriced by PhP536 million, and many others.

Massive demonstrations are being planned in the coming days to demand the resignation of Arroyo. Restive anti-Arroyo soldiers and policemen are reportedly watching in the sidelines ready to move at the proper time. (Please see related story on anti-Arroyo demonstrations)

NDFP Chief Political Consultant Jose Maria Sison said that Arroyo is “ripe for ouster”. He explained that “the sheer growth of the legal and peaceful mass actions in the National Capital Region and on a national scale in the coming days, weeks and months can encourage the military and police to withdraw support from the Arroyo ruling clique and can suffice to cause the resignation, impeachment or outright ouster of the illegitimate and morally bankrupt president”.

Sison further said that prospects for the resumption of formal talks in the GRP-NDFP peace negotiations are bright if the broad masses of the Filipino people and the broad united front succeed in ousting Gloria M. Arroyo. He added, “The broad mass movement can succeed to oust Arroyo only with the full active participation of the patriotic and progressive forces. These (forces) would have some significant weight in the new government and would certainly demand the resumption of the aforesaid formal talks in order to address the roots of the civil war through comprehensive agreements on social, economic and political reforms”.

QUEST FOR APRIL 2008!

My month he he he he he.... This month I will be 30 years old... Whaaaaattttt????!!!! I know, I don't look like one...

According to Rev. Fr. Wongsentian (Taoist Grand Minister),this month there is opportunity at work and business.

SUCCEED!
1. Food Cart Start Up!
2. Pay all your bills!

Good Luck to my new quest! I'm already achieving it now!

AAAATTTTAAAACCCCKKKK!!!!

ASSESSMENT OF THE MARCH QUEST

The quest:
FOCUS ON RICHES!
BATTLE CRY FOR MARCH!

YOUTH MAGAZINE PRODUCTION AND SUBSCRIPTION OF THE SK

Result: ZZZZEEEERRRROOOO!

I was a bit out of myself this month... Istead of focusing on the riches I focused on somethig else... I was teeming with anger the whole month that I had a highblood attack!

Dark Side was awakened, my brooding, cold, calculating, battousai personality who has blood lust and vegeance personified... I could have killed if he took 100% rein... At least I can still control him...

May God have mercy on my enemies... The sleeping demon has awakened...

QUANTITATIVE ANALYSIS QUIZZER

Another important part of the CFA Exam is the Quantitative Analysis. So get your pencils and calculators and rack that brain of yours!

To get the answer key kindly leave a comment so I can send to you the answer key.

1. The future value of $100 invested at 6% for 4 years is:

A. $126.25
B. $79.00
C. $124.79
D. $116.32

2. The present value of $200 to be received 10 years from today, assuming an opportunity cost of 10%, is:

A. $50.79
C. $518.00
B. $200.43
D. $77.11

3. A $100 savings bond with a maturity of 25 years can be purchased for $29.50. Assuming annual compounding, what is the rate of return on the bond?

A. 5%
B. 6%
C. 7%
D. 8%

4. What is the value in five years of $100 invested today at an interest rate of 8 percent per year compounded quarterly?

A. $144.50
B. $144.00
C. $147.75
D. $148.59

5. Tom is saving $1,000 a quarter for the next 4 years. Assuming an annual interest rate of 12% compounded quarterly, how much money will he have at the end of the fourth year?

A. $3,506
B. $19,117
C. $20,157
D. $16,000

6. Jay is 30 years old and will retire at age 65. Jay is saving $1,000 a year and believes he will have a constant interest rate of 7% compounded annually on his investments. How much will Jay have accumulated by age 65?

A. $138,237
B. $97,537
C. $66,674
D. $144,469

7. Zumwalt Inc.’s class B stock is expected to pay $6 in annual dividends forever. If the required return on an equivalent investment is 12%, then a share of Zumwalt stock today is worth:

A. $25
B. $100
C. $50
D. None of the above

8. David wishes to accumulate $1 million by the end of 20 years by making equal annual end-of-year deposits over the next 20 years. If David can earn 10% on his investments, how much must he deposit at the end of each year?

A. $16,556
B. $62,745
C. $117,453
D. $17,460

9. A firm is evaluating a proposal that has an initial investment of $500,000 and cash flows of $125,000 for 6 years. The firm’s cost of capital is 12%. What is the internal rate of return of this investment?

A. 13%
B. 11%
C. 20%
D. 9%

10. Below are some raw data displayed in increasing order from top to bottom.

63.5
96.9
112.3
134.1
66.4
98.3
116.2
138.5
75.6
100.5
116.9
139.8
77.5
100.7
118.3
140.7
84.4
102.0
122.0
143.0
87.6
105.5
122.2
143.9
In constructing a frequency distribution using five classes of equal range, if the first class is “60 up to 80”, the class frequency of the third class is:

A. 4
B. 5
C. 8
D. 9

11. The annual rate of return for JSI’s common stock has been:

20X0 Return 14%
20X1 Return 19%
20X2 Return -10%
20X3 Return 14%

What is the arithmetic mean of the rate of return for JSI’s common stock over the four years?

A. 8.62%
B. 9.25%
C. 14.25%
D. None of the above

12. A portfolio generated the following returns over the last three years:

Year 1 Return 10
Year 2 Return -2
Year 3 Return 5

What is the geometric average return for the three-year period?

A. 4.3%
B. 4.2%
C. 1.3%
D. 5.6%

13. A portfolio of non-dividend-paying stocks earned a geometric mean return of 5.0 percent between January 1, 19X2, and December 31, 19X8. The arithmetic mean return for the same period was 6.0 percent. If the market value of the portfolio at the beginning of 19X2 was$100,000, the market value of the portfolio at the end of 19X8 was closest to:

A. $135,000
B. $140,710
C. $142,000
D. $150,363

14. Which investment has the least risk relative to its mean return?

A. Standard deviation = $500 expected return = $5,000
B. Standard deviation = $700 expected return = $500
C. Standard deviation = $900 expected return = $800
D. Standard deviation = $400 expected return = $350

15. The skyscrapers in a city have heights of 40, 35, 46, 57, 84, 45, and 50 stories.
The percentage of buildings with heights within 1.5 standard deviations of the
mean will be at least:

A. 51%
B. 95%
C. 56%
D. 66%

16. Medical Equipment Suppliers, Inc., must choose between two asset purchases. The annual rate of return and related probabilities given below summarize the firm’s analysis:

Asset A Rate of Return 10% Probability 30%
Asset A Rate of Return 15% Probability 40%
Asset A Rate of Return 20% Probability 30%

Asset B Rate of Return 5% Probability 40%
Asset B Rate of Return 15% Probability 20%
Asset B Rate of Return 25% Probability 40%

Using the information provided above, compute the coefficient of variation of
Asset A and Asset B.

A. Asset A: .11 Asset B: .23
B. Asset A: .18 Asset B: .21
C. Asset A: .23 Asset B: .35
D. Asset A: .26 Asset B: .60

17. A portfolio has exhibited the following characteristics over a 3-year period:

Year 1 Return 5% Variance 43
Year 2 Return 10%
Year 3 Return -3%

The average return on risk-free bonds over the same period was 3.5%. Calculate the Sharpe Ratio for this portfolio.

A. .120
B. .001
C. .011
D. .076

18. There is a 40% chance of an expansion, a 20% chance of a stagnant economy, and a 40% chance of a recession. Stocks behave under these scenarios as follows:

Economy Expansion, Stock Performance Good, Probability 70%
Economy Expansion, Stock Performance Fair, Probability 30%
Economy Expansion, Stock Performance Poor, Probability 0%

Economy Stagnant, Stock Performance Good, Probability 40%
Economy Stagnant, Stock Performance Fair, Probability 30%
Economy Stagnant, Stock Performance Poor, Probability 30%

Economy Recession, Stock Performance Good, Probability 0%
Economy Recession, Stock Performance Fair, Probability 40%
Economy Recession, Stock Performance Poor, Probability 60%

What is the probability of stagnant economy and fair stock market?

A. 30%
B. 10%
C. 34%
D. 6%

19. Based on historical data analysis, an equity analyst provides the following probability of future prices for a particular stock:


Probability 0.10, Price $18
Probability 0.10, Price $16
Probability 0.35, Price $15
Probability 0.30, Price $14
Probability 0.15, Price $12

The stock’s expected value is:

A. $14.00
B. $14.50
C. $14.65
D. $15.00

20. An analyst makes the following calculations about the returns for Stock X and Stock Y:

COVxy = 0.0050
ox = 0.20
0y = 0.06

The correlation coefficient between the returns for Stock X and Stock Y is between:

A. 0.00 and 0.25
B. 0.25 and 0.50
C. 0.51 and 0.75
D. 0.76 and 1.00

21. If there are 9 stocks in a portfolio how many ways can the stocks be labeled if 5 are called outperform, 2 perform, and 2 underperform. How many unique ways can 9 stock in a portfolio be labeled if 5 must be called outperform, 2 perform, and 2 underperform?

A. 1,512
B. 756
C. 3,024
D. 1,008

22. Sandi Santa, CFA, a portfolio manager for North Pole Trust, believes that a well-diversified portfolio can be constructed with 30 stocks. How many 30-stock portfolios can be constructed from the S&P 500 index (assuming there are 500 stocks in the index)?

A. 500!/(500-30)!
B. 500!/30!(500-30)!
C. (30)(500)
D. (30!)(500!)

23. Given the following information regarding the possible returns on a capital project, determine the probability that the project will have a return of 5% or greater.

% Return -5, Probability 15%
% Return 0, Probability 20%
% Return 5, Probability 40%
% Return 10, Probability 15%
% Return 15, Probability 10%

A. 90%
B. 65%
C. 40%
D. 20%

24. If the probability of a stock index generating a return greater than 15% in any given year is 6.68%, what is the standard deviation of the returns assuming the mean return is 5%?

A. 6.08
B. 6.66
C. 10.00
D. 44.36

25. Based on a normal distribution with a mean of 500 and standard deviation of 150, what is the z value for an observation at 200?

A. -2.00
B. -1.75
C. 1.75
D. 2.00

A Tribute to Dorothy Parker

I always loved Dorothy Parker, for those who does not know this heroine of a writter, she is the face behind "Death and Taxes," "Laments for Living," and "After Such Pleasures."

I have collected some qoutations from other writters about her:

"One cubic foot less of space and it would have constituted adultery."

Attributed to Robert Benchley (1889 - 1945)
U.S. humorist, writer, editor, and critic.Describing an office shared with the writer Dorothy Parker.


"She has put into what she has written a voice, a state of mind, an era, a few moments of human experience that nobody else has conveyed."

Attributed to Edmund Wilson (1895 - 1972)
U.S. critic and writer.Referring to Dorothy Parker.


"She is a combination of Little Nell and Lady Macbeth."

Alexander Woollcott (1887 - 1943)
U.S. writer and critic.Referring to Dorothy Parker.
While Rome Burns, "Our Mrs Parker"