1、 7476229133318632 March Mock Exam - PM March Mock Exam - PM 399388 Page 1 Question block created by wizard You have 180 minutes to complete this session. 1. Linda Chin, CFA, is a member of a political group advocating less governmental regulation in all aspects of life. She works in a country where
2、local securities laws are minimal and insider trading is not prohibited. Chins politics are reflected in her investment strategy, where she follows her countrys mandatory legal and regulatory requirements. Which of the following actions by Chin would be most consistent with the CFA Institute Standar
3、ds of Professional Conduct? A. Continuing her current investment strategy B. Following the CFA Institute Standards of Professional Conduct C. Disclosing her political advocacy to clients 2. Colleen ONeil, CFA, manages a private investment fund with a balanced global investment mandate. Her clients i
4、nsist that her personal investment portfolio replicate the investments within their portfolios to assure them she is willing to put her own money at risk. By undertaking which of the following simultaneous investment actions for her own portfolio would ONeil most likely be in violation of Standard V
5、I(B): Priority of Transactions? A. Sale of a listed US blue chip value stock B. Purchase of a UK government bond in the primary market C. Participation in a popular frontier market IPO 3. Millicent Plain has just finished taking Level II of the CFA examination. Upon leaving the examination site, she
6、 meets with four Level III candidates who also just sat for their exams. Curious about their examination experience, Plain asks the candidates how difficult the Level III exam was and how they did on it. The candidates say the essay portion of the examination was much harder than they had expected a
7、nd that they were not able to complete all questions as a result. The candidates go on to tell Plain about broad topic areas that were tested and complain about specific formulas they had memorized that did not appear on the exam. The Level III candidates least likely violated the CFA Institute Stan
8、dards of Professional Conduct by discussing: A. specific formulas. B. the examination essays. C. broad topic areas. 4. Heidi Halvorson, CFA, is the chief investment officer for Tukwila Investors, an asset management firm specializing in fixed-income investments. Tukwila is in danger of losing one of
9、 its largest clients, Quinault Jewelers, which accounts for nearly one-third of its revenues. Quinault recently told Halverson that Tukwila would be fired unless the performance of Quinaults portfolio improves significantly. Shortly after this conversation, Halvorson purchases two corporate bonds sh
10、e believes are suitable for any of her clients based on third-party research from a reliable and diligent source. Immediately after the purchase, one bond increases significantly in price while the other bond declines significantly. At the end of the day, Halvorson allocates the profitable bond trad
11、e to Quinault and the other bond to two of her largest institutional accounts. Halvorson most likely violated the CFA Institute Standards of Professional Conduct in regard to: A. client suitability. B. third-party research. C. trade allocations. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义747622913331863
12、2 March Mock Exam - PM March Mock Exam - PM 399388 Page 2 5. Jack Steyn, CFA, recently became the head of the trading desk at a large investment management firm that specializes in domestic equities. While reviewing the firms trading operations, he notices clients give discretion to the manager to s
13、elect brokers on the basis of their overall services to the management firm. Despite the client directive, Steyn would most likely violate Standard III(A): Loyalty, Prudence, and Care if he pays soft commissions for which of the following services from the brokers? A. Database services for offshore
14、investments B. Equity research reports C. Investment conference attendance 6. Based on his superior return history, Vijay Gupta, CFA, is interviewed by the First Faithful Church to manage the churchs voluntary retirement plans equity portfolio. Each church staff member chooses whether to opt in or o
15、ut of the retirement plan according to his or her own investment objectives. The plan trustees tell Gupta that stocks of companies involved in the sale of alcohol, tobacco, gambling, or firearms are not acceptable investments given the objectives and constraints of the portfolio. Gupta tells the tru
16、stees he cannot reasonably execute his strategy with these restrictions and that all his other accounts hold shares of companies involved in these businesses because he believes they have the highest alpha. By agreeing to manage the account according to the trustees wishes, does Gupta violate the CF
17、A Institute Standards of Professional Conduct? A. Yes, because the restrictions provided by the trustees are not in the best interest of the members B. Yes, because the manager was hired based on his previous investment strategy C. No 7. Jorge Lopez, CFA, is responsible for proxy voting on behalf of
18、 his banks asset management clients. Lopez recently performed a costbenefit analysis that showed the proxy-voting policies might not benefit the banks clients. As a result, Lopez immediately changes the proxy-voting policies and procedures without informing anyone. Lopez now votes client proxies on
19、the side of management on all issues, with the exception of major mergers in which a significant impact on the stock price is expected. Lopez least likely violated the CFA Institute Standards of Professional Conduct in regard to: A. costbenefit analysis. B. voting with management. C. proxy-voting po
20、licy disclosures. 8. Chris Rodriguez, CFA, is a portfolio manager at Nisqually Asset Management, which specializes in trading highly illiquid shares. Rodriguez has been using Hon Securities Brokers almost exclusively when making transactions for Nisqually clients, as well as for his own relatively s
21、mall account. Hon always executes Rodriguezs personal trades at a more preferential price than for Rodriguezs clients accounts. This special pricing occurs regardless of whether or not Rodriguez personally trades before or after clients. Rodriguez should least likely do which of the following in ord
22、er to comply with the CFA Institute Standards of Professional Conduct? A. Trade client accounts before his own account. B. Eliminate the exclusive trading arrangement. C. Average trade prices across all trading accounts. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义7476229133318632 March Mock Exam - PM Ma
23、rch Mock Exam - PM 399388 Page 3 9. When Abdullah Younis, CFA, was hired as a portfolio manager at an asset management firm two years ago, he was told he could allocate his work hours as he saw fit. At that time, Younis served on the board of three non-public golf equipment companies and managed a p
24、ooled investment fund for several members of his immediate family. Younis was not compensated for his board service or for managing the pooled fund. Youniss investment returns attract interest from friends and co-workers who persuade him to include their assets in his investment pool. Younis recentl
25、y retired from all board responsibilities and now spends more than 80% of his time managing the investment pool for which he charges non-family members a management fee. Younis has never told his employer about any of these activities. To comply with the CFA Institute Standards of Professional Condu
26、ct with regard to his business activities over the past two years, Younis would least likely be required to disclose which of the following to his employer? A. Family investment pool management B. Board activities C. Non-family member management fees 10. Tamlorn Mager, CFA, is an analyst at Pyallup
27、Portfolio Management. CFA Institute recently notified Mager that his CFA Institute membership was suspended for a year because he violated the CFA Institute Code of Ethics. A hearing panel also came to the same conclusion. Mager subsequently notified CFA Institute that he does not accept the sanctio
28、n or the hearing panels conclusion. Which of the following actions by Mager would be most consistent with the CFA Institute Professional Conduct Program? A. Providing evidence for his position to an outside arbitration panel B. Using his CFA designation upon expiration of the suspension period C. Pr
29、esenting himself to the public as a CFA charterholder 11. Elbie Botha, CFA, an equity research analyst at an investment bank, disagrees with her research teams buy recommendation for a particular companys rights issue. She acknowledges the teams recommendation is based on a well-developed process an
30、d extensive research, but she feels the valuation is overpriced based on her assumptions. Despite her contrarian view, her name is included on the research report to be distributed to all of the investment banks clients. To avoid violating any CFA Institute Standards of Professional Conduct, it woul
31、d be least appropriate for Botha to undertake which of the following? A. Insist her name be removed from the report B. Leave her name on the report C. Issue a new report 12. Thomas Turkman recently hired Georgia Viggen, CFA, as a portfolio manager for North South Bank. Although Viggen worked many ye
32、ars for a competitor, West Star Bank, the move was straightforward because she did not have a non-compete agreement with her previous employer. Once Viggen starts working for Turkman, the first thing she does is bring to her new employer a trading software package she developed and used at West Star
33、. Using public information, Viggen contacts all of her former clients to convince them to move with her to North South. Viggen also convinces one of the analysts she worked with at West Star to join her at her new employer. Viggen most likely violated the CFA Institute Standards of Professional Cond
34、uct concerning her actions involving: A. clients. B. trading software. C. the analyst. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义7476229133318632 March Mock Exam - PM March Mock Exam - PM 399388 Page 4 13. Lisa Hajak, CFA, specialized in research on real estate companies at Cornerstone Country Bank for
35、 20 years. Hajak recently started her own investment research firm, Hajak Investment Advisory. One of her former clients at Cornerstone asks Hajak to update a research report she wrote on a real estate company when she was at Cornerstone. Hajak updates the report, which she had copied to her persona
36、l computer without the banks knowledge, and replaces references to the bank with her new firm, Hajak Investment Advisory. Hajak also incorporates the conclusions of a real estate study conducted by the Realtors Association that appeared in the Wall Street Journal. She cites the Wall StreetJournal as
37、 her source in her report. She provides the revised report free of charge along with a cover letter for the banks client to become a client of her firm. Concerning the reissued research report, Hajak least likely violated the CFA Institute Standards of Professional Conduct because she: A. did not ci
38、te the actual source of the real estate study. B. solicited the banks client. C. used the bank report without consent. 14. Henrietta Huerta, CFA, writes a weekly investment newsletter to market her services and obtain new asset management clients. A third party distributes the free newsletter on her
39、 behalf to those individuals on its mailing list. As a result, it is widely read by thousands of individual investors. The newsletter recommendations reflect most of Huertas investment actions. After completing further research on East-West Coffee Roasters, Huerta decides to change her initial buy r
40、ecommendation to a sell. To avoid violating the CFA Institute Standards of Professional Conduct, it would be most appropriate for Huerta to distribute the new investment recommendation to: A. newsletter recipients and asset management clients simultaneously. B. asset management clients first. C. new
41、sletter recipients first. 15. Suni Kioshi, CFA, is an analyst at Pacific Asset Management, where she covers small-capitalization companies. On her own time, Kioshi often speculates in low-price thinly traded stocks for her own account. Over the last three months, Kioshi has purchased 50,000 shares o
42、f Basic Biofuels Company, giving her a 5% ownership stake. A week after this purchase, Kioshi is asked to write a report on stocks in the biofuels industry, with a request to complete the report within two days. Kioshi wants to rate Basic Biofuels as a buy in this report but is uncertain how to proc
43、eed. Concerning the research report, what action should Kioshi most likely take to prevent violating any of the CFA Institute Standards of Professional Conduct? A. Not recommend a buy B. Disclose her stock ownership C. Sell her shares 16. Edo Ronde, CFA, an analyst for a hedge fund, One World Invest
44、ments, is attending a key industry conference for the microelectronics industry. At lunch in a restaurant adjacent to the conference venue, Ronde sits next to a table of conference attendees and is able to read their nametags. Ronde realizes the group includes the president of a publicly traded comp
45、any in the microelectronics industry, Fulda Manufacturing, a company Ronde follows. Ronde overhears the president complain about a production delay problem Fuldas factories are experiencing. The president mentions that the delay will reduce Fuldas earnings by more than 20% during the next year if no
46、t solved. Ronde relays this information to the portfolio manager he reports to at One World explaining that in a recent research report he recommended Fulda as a buy. The manager asks Ronde to write up a negative report on Fulda so the fund can sell the stock. According to the CFA Institute Standard
47、s of Professional Conduct, Ronde should least likely: A. request the portfolio manager not act on the information. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义7476229133318632 March Mock Exam - PM March Mock Exam - PM 399388 Page 5 B. leave his research report as it is. C. revise his research report. 17.
48、 Victoria Christchurch, CFA, is a management consultant currently working with a financial services firm interested in curtailing its high staff turnover, particularly among CFA charterholders. In recent months, the company lost 5 of its 10 most senior managers, all of whom have cited systemic uneth
49、ical business practices as the reason for their leaving. To curtail staff turnover by encouraging ethical behavior, it would be least appropriate for Christchurch to recommend the company do which of the following? A. Implement a whistleblowing policy B. Create, implement, and monitor a corporate code of ethics C. Encourage staff retention by offering increased benefits 18. Dilshan Kumar, CFA, is a world-renowned mining analyst based in London. Recently, he received an invitation from Cerbe
