transferpricing

Q5: Tonya analyzed a ‘ num?ber’ of companies and suggested that ‘many’ of the them would be suitable. There is no specific mention that she suggests Hanchin should be acquired nor was she privy to those discussions, thus she could not know that Hanchin would be acquired vs. any of the other companies she recommended. Her analysis that Hanchin would be a good acquisition was based on public information. She violated loyalty by putting her interests ahead of her employer when she purchased the stock.
Q8: Good point, I can see a lot of protests should this question appear on the exam (CFAI may accept multiple answers of the question is ambiguous). I feel that as the terms of the pension are laid out and employees have the option to opt out by joining they are agreeing to the constraints set out. I feel that A is the more appropriate answer given those circumstances
Q18: I would celect C mainly by process of elimination. “A” is wrong becasue he is obligated to seek best execution. “B” is wrong because he must put his clients ahead of himself (to your argument on price fluctuation the question states “highly illiquid” shares which implies small trades will influence price). As for C you need a fair process for allocating trades, they can be allocated based on a FIFO basis instead of averaging all accounts and still comply with the standard.
Best of luck tomorrow.