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Advanced Portfolio Management - AK/ADMS 4501 Practice Final Exam 2010- SolutionsPart 1: Multiple Choice (Q1- 20): Please use the scantron sheet.1. (Q4- Type B) Which of the following data series is most likely to be alaggingindicator?a)Average duration of unemploymentb)Average weekly initial claims for unemployment insurance.c)Number of employees on nonagricultural payrollsd)Number of employees on financial sector payrolls.e)Average weekly hours of manufacturing workers.2. (Q5 – Type B)ABC Corporation has a policy of retaining 75% of its earnings for investing in new business opportunities. The most recent earnings per share for the company was $4. The appropriate discount rate is 12% and the long term growth rate in dividends and earnings is 8%. Using the earnings multiplier model, how much would you be willing to pay for one share of ABC today?3. (Q6 -Type B)Which of the following is notcharacteristic of the "decline" phase of the industry lifecycle?