1、CFA level1-Mock-113 1/39 Questions 118 Relate to Ethics . 2 Questions 1932 Relate to Quantitative analysis . 9 Questions 3344 Relate to Economics . 14 Questions 4568 Relate to Financial Statement Analysis . 18 Questions 6976 Relate to Corporate finance . 26 Questions 7788 Relate to Equity investment
2、. 28 Questions 8994 Relate to Derivatives . 31 Questions 95106 Relate to Fixed-income Analysis . 33 Questions 107110 Relate to Alternative Investments . 36 Questions 111 120 Relate to Portfolio Management . 37 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义CFA level1-Mock-113 2/39 Questions 118 Relate to Et
3、hics 1. Alexander Newton, CFA, is the chief compliance officer for Mills Investment Limited. Newton institutes a new policy requiring the pro rata distribution of new security issues to all established discretionary accounts for which the new issues are appropriate. The policy also provides for the
4、exclusion of newly established discretionary accounts from the distribution until they have reached their one-month anniversary date. This policy is disclosed to all existing and potential clients. Did Newton most likely violate any CFA Institute Standards of Professional Conduct? A. No, because the
5、 policy has been adequately disclosed to all existing and potential clients B. No, because the allocation policy is not inequitable under the standards C. Yes 2. Ian OSullivan, CFA, is the owner and sole employee of two companies, a public relations firm and a financial research firm. The public rel
6、ations firm entered into a contract with Mallory Enterprises to provide public relations services, with OSullivan receiving 40,000 shares of Mallory stock in payment for his services. Over the next 10 days, the public relations firm issued several press releases that discussed Mallorys excellent gro
7、wth prospects. OSullivan, through his financial research firm, also published a research report recommending Mallory stock as a “buy.“ According to the CFA Institute Standards of Professional Conduct, OSullivan is most likely required to disclose his ownership of Mallory stock in: A. the press relea
8、ses only. B. both the press release and the research report. C. the research report only. 3. When Jefferson Piedmont, CFA, joined Branch Investing, Branch began using a quantitative stock selection model Piedmont had developed on his own personal time prior to his Last Name: First Name: No: Date: MO
9、CK EXAM 113 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义CFA level1-Mock-113 3/39 employment with Branch. One year later when Piedmont left Branch Investing, he found the original copy of the model he had developed in a file at his home and presented it to his new employer, which immediately began using t
10、he model. According to the Standards of Practice Handbook, did Piedmont most likely violate any CFA Institute Standards of Professional Conduct? A. Yes, because he misappropriated property now belonging to Branch B. Yes, because he failed to inform his new employer the model was the same one used by
11、 his previous employer C. No 4. Reiko Kimisaki, CFA, is an investment adviser for a national social security fund in a frontier market with a very limited and illiquid capital market. The labor force is young and has an investment time horizon of 25 to 30 years. Kimisaki has been asked to suggest wa
12、ys to increase the investment return of the overall portfolio. After careful assessment of the funds previous investment history, and available asset classes, she considers investment in private equity. What is Kimisakis lowest priority to avoid any Code and Standards violations prior to making this
13、 investment recommendation? A. Determine whether the investment policy statement allows for alternative investments. B. Assess the risk tolerance of the fund. C. Analyze the expected returns of private equity in the market. 5. Heidi Katz is a CFA candidate and an analyst at a pension consulting firm
14、. Her father is a major shareholder and managing director at Saturn Partners, a large hedge fund. When assisting in an alternative manager search for a pension client, Katz plans to recommend Saturns market-neutral strategy because she believes it meets all of the pension plans criteria. Given this
15、situation, the best course of action for Katz is to: A. disclose the potential conflict to the pension client when discussing this recommendation. B. disclose the potential conflict to her employer and follow their guidance regarding disclosure of her relationship to the client. C. not present this
16、strategy to the client and recommend another strategy. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义CFA level1-Mock-113 4/39 6. Rebecca Wong is enrolled to take the Level I CFA exam. Her friend William Leung purchased Level I study materials from a well-known CFA review program the previous year. Leung ma
17、de a photocopy of the previous years copyrighted materials and sold it to Wong to help her study. Who most likely violated the CFA Institute Code of Ethics or any Standards of Professional Conduct? A. Both violated. B. Only Leung violated. C. Neither violated. 7. The Global Investment Performance St
18、andards least likely require: A. composites to be defined according to similar investment objectives and/or strategies. B. non-fee-paying portfolios to be excluded in the returns of appropriate composites. C. nondiscretionary portfolios to be included in composites. 8. According to the Global Invest
19、ment Performance Standards (GIPS), firms must do all of the following except: A. adhere to certain calculation methodologies and make specific disclosures along with their performance. B. provide investors with a comprehensive view of their performance only in terms of returns. C. comply with all re
20、quirements of the GIPS standards, such as updates, guidance statements, and clarifications. 9. Andrew Smith, CFA, works for Granite, a commercial bank that also has a sizable sell-side research division. Smith is presenting financing solutions to a potential business client, Dynamic Materials Corp.
21、As part of his presentation, Smith mentions that Granite will initiate research coverage on Dynamic. Is Smiths arrangement most likely appropriate with regard to the Code and Standards? A. No, because Smith cannot offer to provide research coverage on a company if it becomes a corporate finance clie
22、nt 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义CFA level1-Mock-113 5/39 B. No, because Granite cannot provide research coverage on a corporate finance client because it constitutes a violation of research independence C. Yes 10. Fundamental Asset Managers claims compliance with the CFA Institute Global I
23、nvestment Performance Standards (GIPS) and manages both discretionary and non-discretionary accounts. When constructing a single composite for Fundamental, Juma Dzuya includes all discretionary, fee-paying accounts with both value and growth strategies. Does the composite constructed by Dzuya most l
24、ikely meet the criteria of the GIPS standards? A. No, because non-discretionary accounts are not included B. Yes C. No, because of non-similar investment strategies 11. In order to provide investors with a more comprehensive view of a firms performance, the current GIPS standards includes new provis
25、ions related to: A. the unique characteristics of each asset class. B. all aspects of performance measurement. C. various measures of risk. 12. Adira Badawi, CFA, who owns a research and consulting company, is an independent board member of a leading cement manufacturer in a small local market. Beca
26、use of Badawis expertise in the cement industry, a foreign cement manufacturer looking to enter the local market has hired him to undertake a feasibility study. Under what circumstances can Badawi most likely undertake the assignment without violating the CFA Institute Code of Ethics and Standards o
27、f Professional Conduct? A. He makes full disclosure to both companies. B. He signs confidentiality agreements with both companies. C. He receives written permission from the local company. 13. Amanda Covington, CFA, works for McJan Investment Management. McJan employees must 【梦轩考资】 QQ106454842 专业提供C
28、FA FRM全程高清视频+讲义CFA level1-Mock-113 6/39 receive prior clearance of their personal investments in accordance with McJans compliance procedures. To obtain prior clearance, McJan employees must provide a written request identifying the security, the quantity of the security to be purchased, and the nam
29、e of the broker through which the transaction will be made. Precleared transactions are approved only for that trading day. As indicated below, Covington received prior clearance. Security Quantity Broker Prior Clearance A 100 Easy Trade Yes B 150 Easy Trade Yes Two days after she received prior cle
30、arance, the price of Stock B decreased, so Covington decided to purchase 250 shares of Stock B only. In her decision to purchase 250 shares of Stock B only, did Covington violate any CFA Institute Standards of Professional Conduct? A. Yes, relating to diligence and reasonable basis B. Yes, relating
31、to her employers compliance procedures C. No 14. Claire Jones, CFA, is an analyst following natural gas companies in the United States. At an industry energy conference, the chief financial officer of Alpine Energy states that the company is interested in making strategic acquisitions. At a separate
32、 event, Alpines head of exploration commented that he is bullish on natural gas production prospects within northeastern Pennsylvania. Jones is aware that Alpine currently has very little exposure to this region. She also knows another company in her universe, Pure Energy, Inc. is based in northeast
33、ern Pennsylvania and controls significant assets in the area. Pure Energy is highly leveraged, and Jones believes it will need to raise additional capital or partner with another firm to move to the production phase with their assets. Jones attempts to contact Alpines chief executive officer with an
34、 unrelated question and is told he is unavailable because he is on a business trip to northeastern Pennsylvania. Jones updates her research on Pure Energy and then recommends the stock to Lisa Wong, CFA, a portfolio manager, who purchases significant positions in client accounts. The following week,
35、 Pure Energy announces it has entered into an agreement to be purchased by Alpine for a significant premium. Has either 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义CFA level1-Mock-113 7/39 Jones or Wong most likely violated standards with regard to the integrity of capital markets? A. Yes, both Jones and
36、 Wong have acted on insider information B. No C. Yes, Jones recommendation is based on insider information 15. Which of the following is not a component of the CFA Institute Code of Ethics? A. Place the integrity of the investment profession and the interests of clients above your own personal inter
37、ests. B. Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession. C. Promote financial integrity and seek to prevent and punish abuses in the financial markets. 16. After a firm presents a minimum required number of yea
38、rs of GIPS- compliant performance, the firm must present an additional year of performance each year, building up to a minimum of: A. 5 years of GIPS-compliant performance. B. 15 years of GIPS-compliant performance. C. 10 years of GIPS-compliant performance. 17. Jimmy Lan, CFA, is a technology analy
39、st at Pacific Securities, Inc. and is a leading authority on Japanese technology companies. Lans clients include many leading Japanese equity managers. While still employed at Pacific, Lan makes plans during the weekends to start a new company, JL Consulting. His plans consist of contracting office
40、space, interviewing potential employees, and purchasing office equipment. Once he feels ready to launch his new firm, Lan provides Pacific with his resignation notice. After leaving, Lan constructs earnings models of the technology companies he previously covered, using the knowledge and experience
41、gained while at Pacific. He then contacts former clients by using public sources and encourages them to become clients of his new firm. Are Lans actions in compliance with the Code and Standards? A. No, because the names of former clients, modeling skills, and experience gained by Lan are 【梦轩考资】 QQ1
42、06454842 专业提供CFA FRM全程高清视频+讲义CFA level1-Mock-113 8/39 confidential information of Pacific Securities B. Yes, assuming he is not in breach of any non-compete agreement signed while at Pacific Securities C. No, because he is prohibited from engaging in activities related to starting his new business w
43、hile still employed by Pacific Securities 18. Marc Davidson, CFA, works as a trust specialist for Integrity Financial. Davidson starts a part-time consulting business providing advice to trustees for a fee. He conducts this business on his own time and therefore did not notify Integrity Financial of
44、 his consulting. Davidson asks his assistant to compile a list of Integritys clients and their contact information. The following month, Davidson is offered a similar role at Integritys largest competitor, Legacy Trust Services, Inc. After he begins working at Legacy, his new manager arranges for hi
45、m to meet with a number of prospective clients, many of whom are clients of Integrity. After meeting with Davidson, a number of former Integrity clients decide to transfer their business to Legacy. Did Davidsons action violate the Code and Standards? A. Yes, both Davidsons part-time consulting busin
46、ess and his meetings with Integrity clients are violations of the Standards B. Yes, Davidsons part-time consulting business is a violation of the Standards C. No 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义CFA level1-Mock-113 9/39 Questions 1932 Relate to Quantitative analysis 19. A company has an unsecu
47、red line of credit and needs to maintain its EBIT-to-interest coverage ratio greater than 2.0. Its EBIT is estimated to be between $36 million and $48 million, with all values equally likely. If the forecasted interest charge for the year is $20 million, the probability that EBIT/interest will be more than 2.0 is closest to: A. 66.7%. B. 61.5%. C. 33.3%. 20. Cum
