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; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. 2010 Level I Mock Exam: Afternoon Session ANSWERS AND REFERENCES Questions 1 through 18 relat
3、e to Ethical and Professional Standards. 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 appropriat
4、e. The policy also provides for the distribution of new issues to newly established discretionary accounts where appropriate after their one-month anniversary date. This policy is disclosed to all existing and potential clients. Did Newton violate any CFA Institute Standards of Professional Conduct?
5、 A. No. B. Yes, because the distribution policy should treat all discretionary accounts equally. C. Yes, because disclosure of inequitable allocation methods does not fulfill the duty for fair and equitable trade allocation procedures. Answer: C “Guidance for Standards I-VII”, CFA Institute 2010 Mod
6、ular Level I, Vol. 1, pp. 53-58 Study Session 1-2-a Demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to situations involving issues of professional integrity. Standard III (B) Fair Dealing requires when making investments
7、 in new offerings, advance indications of interest should be obtained as well as, providing for a method for calculating allocations. Additionally, disclosure of inequitable allocation methods does not relieve a member from this obligation. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义By accessing this mo
8、ck 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 action: accessi
9、ng 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. 2. When Jefferson Piedmont, CFA, joined Branch Investing, Branch began using a quantitative stock selection model
10、 Piedmont had developed on his own personal time prior to his employment with Branch. One year later when Piedmont left the firm, he found the original copy of the model he had developed in a file at his home and presented it to his new employer, who immediately began using the model. According to t
11、he Standards of Practice Handbook, did Piedmont violate any CFA Institute Standards of Professional Conduct? A. No. B. Yes, because he misappropriated property now belonging to Branch. C. Yes, because he failed to inform his new employer the model was the same one used by his previous employer. Answ
12、er: A “Guidance for Standards I-VII”, CFA Institute 2010 Modular Level I, Vol. 1, pp. 69-71 Study Session 1-2-a Demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to situations involving issues of professional integrity. Al
13、though departing employees may not take employer property when departing (Standard IV (A) Duties to Employers (Loyalty), the model Piedmont presented to his new employer was not Branchs property. It was created by Piedmont prior to his employment with Branch. The model was not created for Branch in
14、the course of his employment, but was adopted by Branch. 3. Lawrence Hall, CFA, and Nancy Bishop, CFA, began a joint research report on Stamper Corporation. Bishop visited Stampers corporate headquarters for several days and met with all company officers. Prior to the completion of the report, Bisho
15、p was reassigned to another project. Hall utilized his and Bishops research to write the report but did not include Bishops name on the report, because she did not agree with Halls conclusion included in the final report. According to the CFA Institute Standards of Practice Handbook, did Hall violat
16、e any CFA Institute Standards of Professional Conduct? A. No. B. Yes, with respect to misrepresentation. C. Yes, with respect to diligence and reasonable basis. Answer: A “Guidance for Standards I-VII”, CFA Institute 【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 th
17、e 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 access
18、by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. 2010 Modular Level I, Vol. 1, pp. 29-31, 80-82 Study Session 1-2-a Demonstrate a thorough knowledge of the Code of Ethics and Standards o
19、f Professional Conduct by applying the Code and Standards to situations involving issues of professional integrity. Members are in compliance with CFA Institutes Standard V (A) Diligence and Reasonable Basis, if they rely on the research of another party who exercised diligence and thoroughness. Bec
20、ause Bishops opinion did not agree with the final report, disassociating her from the report is one way to handle this difference between the analysts. 4. According to the Global Investment Performance Standards (GIPS), which of the following is not a part of the verification process? Testing whethe
21、r the: A. firm has complied with all the composite construction requirements. B. verification is undertaken by the compliance department in the absence of a third party. C. firms processes and procedures are designed to calculate results in compliance with GIPS standards. Answer: B Introduction to t
22、he Global Investment Performance Standards (GIPS) CFA Institute, 2006 2010 Modular Level I, Vol. 1, p. 131 Study Sessions 1-3-c Explain the requirements for verification of compliance with GIPS standards. Verification tests (Standard V) whether the investment firm has complied with all the composite
23、 construction requirements of GIPS on a firm-wide basis, and whether the firms processes and procedures are designed to calculate and present performance results in compliance with the GIPS Standards. Verification must be performed by an independent third party. A firm cannot perform its own verific
24、ation. 【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 proh
25、ibited 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 exam for any purpose. 5. Umi Grabbo, CFA, is a highly regarded portfo
26、lio manager for Atlantic Advisors (AA), a mid-sized mutual fund firm investing in domestic securities. She has watched the hedge fund boom and on numerous occasions suggested her firm create such a fund. Senior management has refused to commit resources to the area. Attracted by potential higher fee
27、s associated with hedge funds, Grabbo and several other employees organize a hedge fund to invest in international securities. Grabbo is careful to work on the fund development only on her own time. Because AA management thinks hedge funds are a fad, she does not inform her supervisor about the hedg
28、e fund creation. According to the Standards of Practice Handbook, Grabbo should most likely address which of the Standards immediately? A. Disclosure of Conflicts. B. Priority of Transactions. C. Additional Compensation Arrangements. Answer: A “Guidance for Standards I-VII”, CFA Institute 2010 Modul
29、ar Level I, Vol. 1, pp. 75, 89-92, 94-98 Study Sessions 1-2-a Demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to situations involving issues of professional integrity. According to Standard VI (A) Disclosure of Conflicts
30、, Grabbo should disclose to her employer the fact she is developing a hedge fund that could possibly interfere with her responsibilities at AA. In setting up a new fund, Grabbo was not acting for the benefit of her employer. She should have informed AA that she wanted to organize a hedge fund and co
31、me to some mutual agreement on how this would occur. 6. David Donnigan enrolled to take the Level II CFA examination in the current year, however he did not take the exam. Donnigan advised his employer he passed Level II. Subsequently, he registered to take the Level II exam the next year. Which CFA
32、 Institute Standard of Professional Conduct did Donnigan least likely violate? A. Duty to employer. B. Professional misconduct. C. Referencing Candidacy in the CFA Program. Answer: A 【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 moc
33、k 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 access by anyone other than currently-reg
34、istered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. “Guidance for Standards I-VII”, CFA Institute 2010 Modular Level I, Vol. 1, pp. 35, 69-71, 105 Study Session 12a Demonstrate a thorough knowledge of the Code of Ethics and
35、 Standards of Professional Conduct by applying the Code and Standards to situations involving issues of professional integrity. Members should not engage in conduct involving dishonesty, fraud, deceit, or misrepresentation (Standard I (D). The candidates dishonesty is not addressed in the Standard r
36、elating to Duty to Employer, however. As he registered to take the exam in the next year he still qualifies to state he is a candidate (Standard VII (B) but he lied to his employer about passing the examination, which is a professional misconduct violation. 7. Jeffrey Jones passed the Level I CFA ex
37、amination in 1997 and the Level II examination in 2009. He is not currently enrolled for the Level III examination. According to the CFA Institute Standards of Professional Conduct, which of the following is the most appropriate way for Jones to refer to his participation in the CFA Program? A. Jeff
38、rey Jones, CFA (expected 2011). B. Candidate in the CFA Institute CFA Program. C. Passed Level II of the CFA examination in 2009. Answer: C “Guidance for Standards I-VII”, CFA Institute 2010 Modular Level I, Vol. 1, pp. 105-108 Study Session 12a Demonstrate a thorough knowledge of the Code of Ethics
39、 and Standards of Professional Conduct by applying the Code and Standards to situations involving issues of professional integrity. No designation exists for someone who has passed Level I, Level II, or Level III of the CFA exam (Standard VII (B). Persons who have passed a certain level of the exam
40、may state that they have completed that level. A person can only state he is a Candidate if he is currently enrolled in the CFA Program. It is also an improper reference to use “expected” a part of the designation. 【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
41、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 access by
42、 anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock exam for any purpose. 8. Rebecca Wong is enrolled to take the Level I CFA examination. Her friend William Leung had purchased Level I study materials from a well
43、-known CFA review program the previous year. Leung made a photocopy of the previous years copyrighted materials and sold it to Wong to help her study. Who violated the CFA Institute Code of Ethics or any Standards of Professional Conduct? A. Both violated. B. Neither violated. C. Only Leung violated
44、. Answer: A “Guidance for Standards I-VII”, CFA Institute 2010 Modular Level I, Vol. 1, pp. 15-18 Study Session 12a Demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to situations involving issues of professional integrity
45、. Photocopying copyrighted material, regardless of the year of publication, is a violation of the CFA Institute Standards (Standard I (A) as copyrighted materials are protected by law. Candidates and members must comply with all applicable laws, rules, and regulations and must not knowingly particip
46、ate or assist in a violation of laws. 9. Nicholas Bennett, CFA, is a trader at a stock exchange. Another trader approached Bennett on the floor of the exchange and verbally harassed him about a poorly executed trade. Bennett in response pushed the trader and knocked him to the ground. The exchange,
47、after investigation, cleared Bennett from any wrongdoing. Which of the following best describes Bennetts conduct in relation to the CFA Institute Code of Ethics or Standards of Professional Conduct? Bennett: A. did not violate any Code or Standard. B. violated the Professional Misconduct Standard. C
48、. violated both Misconduct and Integrity of Capital Markets Standards. Answer: B “Guidance for Standards I-VII”, CFA Institute 2010 Modular Level I, Vol. 1, pp. 11, 35 Study Session 12a 【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
49、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 access by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing, distributing and/or reprinting the mock
