2014levelImorningsessionquestions.pdf
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1、 3172168919041893 March Mock Exam-AM 399388 Page 1 You have 180 minutes to complete this session.1.Carlos Cruz,CFA,is one of two founders of an equity hedge fund.Cruz manages the funds assets,and the other co-founder,Brian Burkeman,CFA,is responsible for fund sales and marketing.Cruz notices the mos
2、t recent sales material used by Burkeman indicates assets under management are listed at a higher value than the current market value.Burkeman justifies the discrepancy by stating recent market declines account for the difference.To comply with the CFA Institute Standards of Professional Conduct,Cru
3、z should least likely take which of the following actions?A.Provide a disclaimer in marketing materials indicating prices are as of a specific date.B.Report the discrepancy to CFA Institutes Professional Conduct Program.C.Correct the asset information and provide updates to prospective clients.2.Chr
4、istina Ng,a Level I CFA candidate,defaulted on a bank loan she obtained to pay for her masters degree tuition when her wedding cost more than expected.A micro finance loan company lent her money to pay off the tuition loan in full,including penalties and interest.The micro finance loan company even
5、extended further credit to pay for her parents outstanding medical bills.Unfortunately,her parents health problems escalated to the point that Ng had to take extensive time away from work to deal with the issues.She was subsequently fired and consequently defaulted on the second loan.Because she was
6、 no longer employed,Ng decided to file for personal bankruptcy.Do the loan defaults leading up to Ngs bankruptcy most likely violate Standard I(D):Misconduct?A.No B.Yes,with regard to the first loan default C.Yes,with regard to the second loan default 3.Kim Klausner,CFA,monitors several hundred empl
7、oyees as head of compliance for a large investment advisory firm.Klausner has always ensured that his companys compliance program met or exceeded those of its competitors.Klausner,who is going on a long vacation,has delegated his supervisory responsibilities to Sue Chang.Klausner informs Chang that
8、her responsibilities include detecting and preventing violations of any capital market rules and regulations and the CFA Institute Standards of Professional Conduct.Klausner least likely violated the CFA Institute Standards of Professional Conduct by failing to instruct Chang to also consider:A.indu
9、stry standards.B.firm policies.C.legal restrictions.4.When a client asks her how she makes investment decisions,Petra Vogler,CFA,tells the client she uses mosaic theory.According to Vogler,the theory involves analyzing public and nonmaterial nonpublic information,including the evaluation of statemen
10、ts made to her by company insiders in one-on-one meetings in which management discusses new earnings projections not known to the public.Vogler also gathers general industry information from industry experts she has contacted.Vogler most likely violates the CFA Institute Standards of Professional Co
11、nduct because of her use of:A.nonmaterial nonpublic information.B.one-on-one meeting information.【梦轩考资】QQ106454842 专业提供CFA FRM全程高清视频+讲义 3172168919041893 March Mock Exam-AM 399388 Page 2 C.industry expert information.5.Bailey Watson,CFA,manages 25 emerging market pension funds.He recently had the opp
12、ortunity to buy 100,000 shares in a publicly listed company whose prospects are considered above industry norm by most analysts.The companys shares rarely trade because most managers use a buy-and-hold strategy because of the companys small free float.Before placing the order with his dealer,Watson
13、allocated the shares to be purchased according to the weighted value of each of his clients portfolios.When it came time to execute the trades,the dealer was able to purchase only 50,000 shares.To prevent violating Standard III(B):Fair Dealing,it would be most appropriate for Watson to reallocate th
14、e 50,000 shares purchased by:A.reducing each pension funds allocation proportionately.B.distributing them equally among all the pension fund portfolios.C.allocating randomly but giving funds left out priority on the next similar type trade.6.Lin Liang,CFA,is an investment manager and an auto industr
15、y expert.Last month,Liang sent securities regulators an anonymous letter outlining various accounting irregularities at Road Rubber Company.Shortly before he sent the letter to the regulators,Liang shorted Road stock for his clients.Once the regulators opened an investigation,which Liang learned abo
16、ut from his sources inside the company,Liang leaked this information to multiple sources in the media.When news of the investigation became public,the share price of Road immediately dropped 30%.Liang then covered the short positions and made$5 per share for his clients.Liang least likely violated w
17、hich of the CFA Institute Standards of Professional Conduct?A.Priority of Transactions B.Misconduct C.Market Manipulation 7.Jennifer Ducumon,CFA,is a portfolio manager for high-net-worth individuals at Northeast Investment Bank.Northeast holds a large number of shares in Baby Skin Care Inc.,a manufa
18、cturer of baby care products.Northeast obtained the Baby Skin Care shares when it underwrote the companys recent IPO.Ducumon has been asked by the investment banking department to recommend Baby Skin Care to her clients,who currently do not hold any shares of Baby Skin Care in their portfolios.Altho
19、ugh Ducumon has a favorable opinion of Baby Skin Care,she does not consider the shares a buy at the IPO price or at current price levels.According to the CFA Institute Standards of Professional Conduct,the most appropriateaction for Ducumon is to:A.recommend the shares after additional analysis.B.ig
20、nore the request.C.follow the request as soon as the share price declines.【梦轩考资】QQ106454842 专业提供CFA FRM全程高清视频+讲义 3172168919041893 March Mock Exam-AM 399388 Page 3 8.Rodney Rodrigues,CFA,is responsible for identifying professionals to manage specific asset classes for his firm.In selecting external a
21、dvisers or subadvisers,Rodrigues reviews the advisers investment process,established code of ethics,the quality of the published return information,and the compliance and integrated control framework of the organization.In completing his review,Rodrigues most likely violated the CFA Institute Standa
22、rds of Professional Conduct with regard to his due diligence on:A.internal control procedures.B.adherence to strategy.C.performance measures.9.Solomon Sulzberg,CFA,is a research analyst at Blue Water Management.Sulzbergs recommendations typically go through a number of internal reviews before they a
23、re published.In developing his recommendations,Sulzberg uses a model developed by a quantitative analyst within the firm.Sulzberg made some minor changes to the model but retained the primary framework.In his reports,Sulzberg attributes the model to both the quantitative analyst and himself.Before t
24、he internal reviews of his reports are completed,Sulzberg buys shares in one of the companies.After the internal review is complete,he fails to recommend the purchase of the stock to his clients and erases all of his research related to this company.Sulzberg least likely violated the CFA Institute S
25、tandards of Professional Conduct related to:A.Misrepresentation.B.Record Retention.C.Priority of Transactions.10.Jackson Barnes,CFA,works for an insurance company providing financial planning services to clients for a fee.Barnes has developed a network of specialistsincluding accountants,lawyers,and
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