1、 By accessing this mock exam, you agree to the following terms of use: This mock exam is provided to currently-registered CFA candidates. Candidates may view and print the exam for personal exam preparation only. The following activities are strictly prohibited and may result in disciplinary and/or
2、legal action: accessing or permitting access by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. 2011 Level I Mock Exam: Afternoon Session The afternoon session of the 2011 Level I Chartere
3、d Financial Analyst (CFA)Mock Examination has 120 questions. To best simulate the exam day experience, candidates are advised to allocate an average of 1.5 minutes per question for a total of 180 minutes (3 hours) for this session of the exam. Questions Topic Minutes 1-18 Ethical and Professional St
4、andards 27 19-32 Quantitative Methods 21 33-44 Economics 18 45-68 Financial Statement Analysis 36 69-78 Corporate Finance 15 79-90 Equity Investments 18 91-96 Derivative Investments 9 97-108 Fixed Income Investments 18 109-114 Alternative Investments 9 115-120 Portfolio Management 9 Total: 180 By ac
5、cessing this mock exam, you agree to the following terms of use: This mock exam is provided to currently-registered CFA candidates. Candidates may view and print the exam for personal exam preparation only. The following activities are strictly prohibited and may result in disciplinary and/or legal
6、action: accessing or permitting access by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. Questions 1 through 18 relate to Ethical and Professional Standards. 1. Tibor Figeczky, CFA, is an
7、 equity trader at Global Investment Bank (GB). Figeczky traded the banks investment portfolio profitably for the past three years and earned significant bonuses for his efforts. Subsequently, internal auditors of GB formally accused Figeczky of exceeding his trading authority and engaging in unautho
8、rized trades. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, Figeczky should most likely: A. disclose the complaint to the CFA Institute. B. refuse further bonuses until the issue is resolved. C. request a temporary suspension of his CFA Institute membership. 2.
9、 Alexandra Zagoreos, CFA, is the head of a government pension plan. Whenever Zagoreos hires a money management firm to work with the pension plan, she finalizes the deal over dinner at a nice restaurant. At these meals, Zagoreos also arranges for the money manager to provide her payments equal to 10
10、% of the management fee the manager receives from the pension plan. Zagoreos keeps half of the payments for her own use and distributes the remainder as cash incentives to a handful of her most trusted staff. Zagoreos least likely violated which of the following CFA Institute Code of Ethics and Stan
11、dards of Professional Conduct? A. Referral fees. B. Loyalty, Prudence and Care. C. Additional Compensation Arrangements. 3. Christy Pasley, CFA, is the Chief Investment Officer for Risen Investment Funds (RIF) a mutual fund organization. At a meeting between Homeland Builders (HB), a publicly traded
12、 company, Pasley learns HB sales are much slower than expected. In fact, HB sales declined more than 20% in the last quarter, but this information has not yet been widely disseminated. Immediately after meeting with HB, Pasley purchases put options on HB stock. Subsequently, HB issues a press releas
13、e with their most recent sales figures. Has Pasley most likely violated the CFA Institute Standards of Professional Conduct? A. Yes. B. No, because the securities purchased were options. C. No, because the information was obtained directly from the company. By accessing this mock exam, you agree to
14、the following terms of use: This mock exam is provided to currently-registered CFA candidates. Candidates may view and print the exam for personal exam preparation only. The following activities are strictly prohibited and may result in disciplinary and/or legal action: accessing or permitting acces
15、s by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. 4. Florence Zuelekha, CFA, is an equity portfolio manager at Grid Equity Management (GEM), a firm specializing in commodities. Zuelekha
16、, who previously focused on alternative energy, recently attends her first commodity conference, sponsored in large part by GEM. Independent industry experts, argued commodities would increase in value and recommended investors hold at least 10% of their portfolio assets in commodities based on cons
17、istent increases in their values over the previous two years. Without doing any additional research, Zuelekha recommends to all her clients an immediate allocation of 5% of their portfolio into commodities. Over the next few weeks, Zuelekha moves her own portfolio to a 10% commodity allocation. Whic
18、h of the CFA Standards did Zuelekha most likely violate? A. Priority of Transactions. B. Independence and Objectivity. C. Diligence and a Reasonable Basis. 5. Joan Tasha, CFA, a supervisor at Olympia Advisors (OA), wrote and implemented compliance policies at her firm. A long time OA employee, Derek
19、 Longtree, recently changed the asset allocation of a client, which is inconsistent with her financial needs and objectives and with OAs policies. Until now Longtree has never violated OAs policies. Tasha discusses the issue with Longtree but takes no further action. Do Tashas actions concerning Lon
20、gtree most likely violate any CFA Institute Standards of Professional Conduct? A. No. B. Yes, because she failed to detect Longtrees actions. C. Yes, because she did not take steps to ensure that the violation will not be repeated. 6. Wang Dazong, CFA, is a sole proprietor investment advisor. Dazong
21、 believes in putting his money at risk along with his clients and trades the same securities as his clients. In order to ensure fair treatment of all accounts, he rotates trade allocations so that each account has an equal likelihood of receiving a fill on their orders. This allocation procedure als
22、o applies to Dazongs own account. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, the allocation procedure used by Dazong: A. complies with the Standards. B. requires revision to ensure client trades take precedence. C. should be disclosed and written approval re
23、ceived from clients. By accessing this mock exam, you agree to the following terms of use: This mock exam is provided to currently-registered CFA candidates. Candidates may view and print the exam for personal exam preparation only. The following activities are strictly prohibited and may result in
24、disciplinary and/or legal action: accessing or permitting access by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. 7. Tammi Holmberg is enrolled to take the Level I CFA examination. While
25、 taking the CFA examination, the candidate on Holmbergs immediate right takes a stretch break and a piece of paper from his pocket falls onto Holmbergs desk. Holmberg glances at the paper and realizes there is information written on the paper, which includes a formula Holmberg needs for the question
26、 she is working on. Holmberg had not memorized this formula and could not complete the question without this information. Holmberg pushes the paper off her desk and uses the formula to complete the question. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, Holmber
27、g most likely: A. compromised her exam. B. was free to act on the information that fell on her desk. C. is responsible for notifying exam proctors of her neighbors violation. 8. Kazuya Kato, CFA, is a widely followed economist at a global investment bank. When Kato opines on economic trends, markets
28、 react by moving stock valuations considerably. When Kato receives information of a temporary oversupply of rare earth metals, he issues a forecast that price trends for rare earth metals will be down significantly on a long-term basis. Kato also secretly sells his report to a widely followed Intern
29、et site. Prior to issuing this forecast, Kato emailed all portfolio managers at his bank with a copy of his report indicating that his opinion would be reversed shortly so there will be trading opportunities. Kato least likely violated which of the following CFA Institute Code of Ethics and Standard
30、s of Professional Conduct? A. Market Manipulation. B. Priority of Transactions. C. Additional Compensation Arrangements. 9. Oliver Rae, CFA, is an individual investment adviser specializing in commercial real estate. Rae recently packaged a real estate limited partnership (RELP), which he sold in a
31、private placement to his existing advisory clients. The partnership has purchased four properties in which Rae held a 5% minority interest. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, Rae should: A. manage the partnership separately from his advisory business
32、. B. disclose conflicts related to the real estate he sold to the partnership. C. return all profits earned from his minority interest to the limited partners. By accessing this mock exam, you agree to the following terms of use: This mock exam is provided to currently-registered CFA candidates. Can
33、didates may view and print the exam for personal exam preparation only. The following activities are strictly prohibited and may result in disciplinary and/or legal action: accessing or permitting access by anyone other than currently-registered CFA candidates; copying, posting to any website, email
34、ing, distributing and/or reprinting the mock exam for any purpose. 10. Noor Hussein, CFA, runs a financial advisory business, specializing in retirement planning and investments. One of her clients asks her to advise the firms pension fund trustees on available investments in the market including Is
35、lamic products. On the day prior to the meeting, Hussein spends an hour familiarizing herself with Islamic investment products and getting updates on local market conditions. The next day she recommends Islamic investment products to the trustees based on her research and her expertise in retirement
36、 planning and investments. The trustees subsequently incorporate Islamic products into their investment allocation. Did Husseins basis for the recommendation most likely comply with the CFA Code of Ethics? A. Yes. B. No, with regard to Misconduct. C. No, with regard to Diligence and Reasonable Basis
37、. 11. Praful Chandarana, CFA, is starting a new business to offer investment-consulting services to pension fund trustees in response to a new regulation that requires all pension fund Investment Policy Statements (IPS) to be reviewed and approved by an independent CFA Charterholder. Prior to starti
38、ng the new business, he meets with the pension fund regulator to clarify if the CFA Charterholder undertaking the IPS review should be a licensed financial advisor. A separate regulatory body grants the license to those giving investment advice to clients. The regulator states they do not require th
39、e CFA Charterholder to hold a financial advisors license, despite financial-related advice being given to the pension funds during any IPS review. Chandarana therefore, starts his new business to undertake IPS reviews without obtaining a financial advisors license. Subsequently when clients of his f
40、ormer employer contact him he informs them of his new company and the services he offers. Does Chandarana most likely violate the CFA Code and Standards? A. No. B. Yes, with regard to Professionalism. C. Yes, with regard to Duties to Employer. 12. Mailaka Securities (MS) advertises the use of a “bot
41、tom up” investment style in its marketing material. Recently, MS senior management decided to switch to a “top down” approach, citing the fact that it is less labor intensive. All other aspects of the research process are to remain the same. The head of research at MS, Mara Cherogony, CFA, is instru
42、cted to supervise the implementation of the new procedures, notify clients of the changes, and revise the text of marketing materials when new material is produced. Which of the following CFA Standards pertaining to Investment Analysis, Recommendations and Actions is Cherogony least likely in danger
43、 of violating? A. Supervisory Responsibility. B. Communication with Clients. C. Diligence and Reasonable Basis. By accessing this mock exam, you agree to the following terms of use: This mock exam is provided to currently-registered CFA candidates. Candidates may view and print the exam for personal
44、 exam preparation only. The following activities are strictly prohibited and may result in disciplinary and/or legal action: accessing or permitting access by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exa
45、m for any purpose. 13. Preeta Singh, a CFA Candidate, is an asset manager employed by a fund management company managing very large segregated pension funds. In her spare time outside of working hours, Singh likes to provide management-consulting services to small companies to help grow their busine
46、sses, focusing on strategic planning. Singh is paid for the consulting services and has also provided her employer information about these outside activities. Does Singh most likely violate the CFA Code of Ethics with regard to Duties to Employers? A. No. B. Yes, with regard to loyalty. C. Yes, with
47、 regard to additional compensation arrangements. 14. Yip Wai Yin, a CFA Candidate, is an independent mutual fund sales agent. For every front-end load product she promotes, Yip receives a portion of the front-end fee as commission, at the time of sale. For every back-end load fund she sells, Yip rec
48、eives a smaller commission paid at the end of the year. Yip always informs her clients she is paid a commission as an agent, but does not provide details of the compensation structure. When pitching her favored front-end load product line she tells clients 20% of her commission is always invested in
49、 the same fund as proof of her confidence in the fund she recommends. Which CFA Code of Standards with regard to Conflicts of Interest does Yip least likely violate? A. Referral Fees. B. Disclosure of Conflicts. C. Priority of Transactions. 15. David Bravoria, CFA, is an independent financial advisor for a high net worth client with whom he had not had contact in over two years. During a recent brief telephone conversation, the client states he wants to increase his risk exposure. Bravoria subsequently recommends and inves
