7. [A] extent    [B] range    [C] line    [D] area

8. [A] for    [B] in    [C] on    [D] up

9. [A] virtually    [B] admittedly    [C] absolutely    [D] originally

10. [A] assume    [B] assess    [C] dismiss    [D] erase

11. [A] them    [B] which    [C] that    [D] whom

12. [A] management    [B] insurance    [C] security    [D] technology

13. [A] what    [B] those    [C] where    [D] it

14. [A] guarantee    [B] protection    [C] component    [D] source

15. [A] secured    [B] sponsored    [C] released    [D] launched

16. [A] look to    [B] set up    [C] lay down    [D] rely on

17. [A] terms    [B] specifications    [C] concepts    [D] consequences

18. [A] is    [B] being    [C] been    [D] are

19. [A] emerge    [B] appear    [C] stand    [D] arise

20. [A] somehow    [B] anyway    [C] otherwise    [D] thereby

Section II Reading Comprehension
Part A
Directions:
Read the following four texts. Answer the questions below each text by choosing A, B, C or D. Mark your answers on ANAWER SHEET 1 (40 points)

Text 1
    The California Public Employees' Retirement System (CalPERS) has positioned itself as the premier champion of investor rights, regularly singling out bad managers at some of the nation's largest companies in its annual corporate-governance focus lists. And with $153 billion under management, Wall Street tends to listen when CalPERS speaks out. But the country's largest pension fund has never taken on as big a fish as it did Dec. 16, when it filed a class action against the New York Stock Exchange and seven of its member firms. CalPERS' suit charges the NYSE and specialist firms with fraud, alleging that the exchange skirted its regulatory duties and allowed its members to trade stocks at the expense of investors.

    The move is a major slap in the face for the NYSE's recently appointed interim Chairman John Reed. The former Citibank chairman and CEO came on board in September after the exchange's longtime head, Richard Grasso, resigned under pressure over public outrage about his excessive compensation.

    Reed has been widely criticized by CalPERS and other institutional investors for not including representatives of investors on the exchange's newly constituted board and not clearly separating the exchange's regulatory function from its day-to-day operations. The CalPERS lawsuit is evidence that the investment communities' dissatisfaction hasn't ebbed. "Our hopes were dashed when Mr. Reed didn't perform," says Harrigan.