Sasha, a Manager of a Small Department in a Major

question 32

Multiple Choice

Sasha, a manager of a small department in a major financial services firm, is having a one-on-one meeting with an employee who seems worried about the ethics challenges of working at the firm. What is the last substantial thing Sasha should bring up in the meeting before it concludes?

• A) Ask the employee if there have been any challenges so far in living up to the company's code of ethics.
• B) Ask the employee to offer names of employees who the employee suspects of being unethical.
• C) Tell the employee not to worry and that all concerns will be addressed in time.
• D) Tell the employee to consider how reporting on other employees might damage their careers.

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Definitions:

Effective Return

The actual yield or rate of return achieved by an investment, accounting for compounding interest or reinvestments, as opposed to the nominal rate.

Compounded Daily

Refers to the process where interest earned is added to the principal daily, allowing the investment to grow at an accelerated rate due to the effects of compounding.

EAR

Effective Annual Rate, the interest rate on an investment or loan that considers compounding within the year.

Compounded Quarterly

A method of calculating interest where the interest earned over a quarter is added to the principal sum, and the next quarter's interest is calculated over the new principal.