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 l
2、egal action: accessing or permitting access by anyone other than currently registered CFA candidates and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpose. 2012 Level I Mock Exam: Morning Session The morning session of the 2012 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 118 Ethical and Professional S
4、tandards 27 1932 Quantitative Methods 21 3344 Economics 18 4568 Financial Statement Analysis 36 6978 Corporate Finance 15 7990 Equity Investments 18 9196 Derivative Investments 9 97108 Fixed Income Investments 18 109114 Alternative Investments 9 115120 Portfolio Management 9 Total: 180 【梦轩考资】 QQ1064
5、54842 专业提供CFA FRM全程高清视频+讲义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 resul
6、t in disciplinary and/or legal action: accessing or permitting access by anyone other than currently registered CFA candidates and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpose. Questions 1 through 18 relate to Ethical and Professional Stan
7、dards 1. Which of the following least likely reflects the two primary principles of the CFA Institute Rules of Procedure for Proceedings Related to Professional Conduct? A. Confidentiality of proceedings B. Fair process to the member and candidate C. Public disclosure of disciplinary sanctions Answe
8、r = C “Code of Ethics and Standards of Professional Conduct,” CFA Institute 2012 Modular Level I, Vol. 1, p. 8 Study Session 1-1-a Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards. C is correct because the two prin
9、ciples of the Rules of Procedure for Proceedings Related to Professional Conduct are confidentiality of proceedings and fair process to the member and candidate. 2. Fundamental Asset Managers claims compliance with the CFA Institute Global Investment Performance Standards (GIPS ) and manages both di
10、scretionary 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 likely meet GIPS criteria? A. Yes B. No, because of non-sim
11、ilar investment strategies C. No, because non-discretionary accounts are not included Answer = B “Introduction to the Global Investment Performance Standards (GIPS ),” CFA Institute 2012 Modular Level I, Vol. 1, p. 173 Study Session 1-3-b Explain the construction and purpose of composites in perform
12、ance reporting. B is correct because a composite must include all actual, fee-paying, discretionary portfolios managed in accordance with the same investment mandate, objective, or strategy (Standards IV Composites). By including both value and growth portfolios, the composite is made up of portfoli
13、os with different investment mandates or strategies. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义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 on
14、ly. 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 and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpo
15、se. 3. 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. Because of Badawis expertise in the cement industry, a foreign cement manufacturer looking to enter the local market has hired him to underta
16、ke a feasibility study. Under what circumstances can Badawi most likely undertake the assignment without violating the CFA Institute Code of Ethics and Standards of Professional Conduct? If he: A. makes full disclosure to both companies. B. receives written permission from the local company. C. sign
17、s confidentiality agreements with both companies. Answer = A “Guidance for Standards IVII,” CFA Institute 2012 Modular Level I, Vol. 1, pp. 123125 Study Session 1-2-c Recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct. A is c
18、orrect because making full and fair disclosure of all matters that could reasonably be expected to impair ones independence and objectivity or interfere with respective duties to ones clients is required by Standard VI Conflicts of Interest of the CFA Institute Code of Ethics and Standards of Profes
19、sional Conduct. 4. Noor Mawar, CFA, manages a trust fund with the beneficiary being an orphaned 18-year-old student. The investment policy dictates that trust assets are expected to provide the student with a stable low risk source of income until she reaches the age of 30 years. Based on informatio
20、n from an internet blog, the student asks Mawar to invest in a new business venture she expects will provide high returns over the next 5 years. Mawar ignores the request, instead securing conservative investments to provide sufficient income. Did Mawar most likely violate the CFA Institute Code of
21、Ethics and Standards of Professional Conduct? A. Yes B. No, because the clients objectives were met C. No, because the investment time frame does not match the investment horizon Answer = B “Guidance for Standards IVII,” CFA Institute 2012 Modular Level I, Vol. 1, pp. 7880 Study Session 1-2-b Distin
22、guish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards. B is correct because the client is the trust/trustees, not the beneficiary. Mawar followed Standard III (C) Suitability by managing the trust assets in a way that would likely result in a
23、【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义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
24、and may result in disciplinary and/or legal action: accessing or permitting access by anyone other than currently registered CFA candidates and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpose. stable source of income while keeping the risk pr
25、ofile low, thereby complying with the investment objectives of the trust. 5. Vishal Chandarana, an unemployed research analyst, recently registered for the CFA Level I exam. After two months of intense interviewing, he accepts a job with a stock brokerage company in a different region of the country
26、. Chandarana posts on a social media blog how being a CFA candidate really helped him get a job. He also notes how relieved he was when his new employer didnt ask him about being fired from his former employer. Which CFA Institute Code of Ethics or Standards of Professional Conduct did Chandarana le
27、ast likely violate? A. Misconduct B. Loyalty to Employers C. Reference to the CFA Program Answer = C “Guidance for Standards IVII,” CFA Institute 2012 Modular Level I, Vol. 1, pp. 4647, 9091, 144146 Study Session 1-2-a, b Demonstrate and explain the application of the Code of Ethics and Standards of
28、 Professional Conduct to situations involving issues of professional integrity. Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards. C is correct because there is no evidence Chandarana violated Standard VII (B) with regard to his bein
29、g a CFA candidate. Specifically, Chandarana does not overstate his competency or imply he will achieve superior performance as a result of his CFA designation. It does appear Chandarana did not act with integrity when he hid information that could potentially harm his new employers reputation, thus
30、violating Standard I (D) Professionalism (Misconduct) and Standard IV (A) Duty to Employers (Loyalty). 6. Kam Bergeron, CFA, is an equity portfolio manager who often takes time off in the afternoon to play golf with important clients. Today, Bergeron is on the golf course when his game is interrupte
31、d by a phone call from his office. The call is from Bergerons assistant, who notifies him of a steep and accelerating market decline. Bergeron, eager to get back to his golf game, tells his assistant to raise cash by selling 15% of all clients holdings. Bergeron instructs his assistant to first sell
32、 the most liquid stocks in each clients portfolio and then do the same for his personal account. Bergeron is least likely to be in violation of which of the CFA Institute Standards of Professional Conduct? A. Suitability B. Priority of transactions C. Diligence and reasonable basis Answer = B 【梦轩考资】
33、 QQ106454842 专业提供CFA FRM全程高清视频+讲义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 ma
34、y result in disciplinary and/or legal action: accessing or permitting access by anyone other than currently registered CFA candidates and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpose. CFA Institute Standards 2012 Modular Level I, Vol. 1, p
35、p. 7879, 107108, 131 Study Session 1-2-b Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards. B is correct, as there is no indication a violation of Standard VI (B) Priority of Transactions occurred. The Standard concerns transactions
36、for clients having priority over employees transactions and is not applicable in this case because the manager gives instructions to sell his personal holdings after those of his clients. 7. Ileana Inkster, CFA, was recently offered a senior management position within the trust department at a regio
37、nal bank. The department is new, but the bank has plans to expand it significantly over the next few months. Inkster has been told she will be expected to help grow the client base of the trust department. She is informed the trust department plans to conduct educational seminars and pursue the atte
38、ndees as new clients. Inkster notices recent seminar advertisements prepared by the banks marketing department do not mention investment products will be for sale at the seminar. The ads indicate attendees can “learn how to immediately add $100,000 to their net worth.” What should Inkster most likel
39、y do to avoid violating any CFA Institute Standards of Professional Conduct? A. Decline to accept the new position B. Accept the position and revise the marketing material C. Accept the position and inform senior management of inadequate compliance procedures Answer = A CFA Institute Standards 2012
40、Modular Level I, Vol. 1, pp. 101102 Study Session 1-2-c Recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct. A is correct because the prospective supervisors first step should be to not take the position. Accepting the positio
41、n with inadequate procedures in place or improper marketing material would leave Inkster at risk of incurring a violation of the Code and StandardsStandard IV (C) Responsibilities of Supervisors. She could agree to be hired as an interim consultant with the bank in order to implement adequate proced
42、ures before taking on any supervisory role. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义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 f
43、ollowing 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 and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpose. 8. Mo
44、lly Burnett, CFA, is a portfolio manager for a fund that only invests in environmentally friendly companies. A multinational utility company recently acquired one of the funds best performing investments, a wind power company. The wind power companys shareholders received utility company shares as p
45、art of the merger agreement. The utility has one of the worst environmental records in the industry, but its shares have been one of the top performers over the past 12 months. Because the utility pays a high dividend every three months, Burnett holds the utility shares until the remaining two divid
46、ends are paid for the year then sells the shares. Burnett most likely violated the CFA Institute Standard of Professional Conduct concerning: A. suitability. B. disclosure of conflicts. C. independence and objectivity. Answer = A CFA Institute Standards 2012 Modular Level I, Vol. 1, pp. 2729, 7881,
47、123125 Study Session 1-2-b Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards. A is correct because the utility is not a suitable investment for a fund that only invests in companies with good environmental records. Continuing to hold
48、 this investment, therefore, was a violation of Standard III (C) Suitability. 9. Pia Nilsson is a sole proprietor investment advisor. The economic recession has reduced the number of clients she advises and caused revenues to decline. As a result, Nilsson has not paid her CFA Institute membership dues for the past two years. When a national financial publication recently interviewed Nilsson, she indicated that up until two years ago she had been a CFA charterholder and a CFA Institute member in good standing. In addition, she stated the comp
