1、 3172168919041893 March Mock Exam - AM 399388 Page 1 You have 180 minutes to complete this session. 1. Carlos Cruz, CFA, is one of two founders of an equity hedge fund. Cruz manages the funds assets, and the other co-founder, Brian Burkeman, CFA, is responsible for fund sales and marketing. Cruz not
2、ices the most recent sales material used by Burkeman indicates assets under management are listed at a higher value than the current market value. Burkeman justifies the discrepancy by stating recent market declines account for the difference. To comply with the CFA Institute Standards of Profession
3、al Conduct, Cruz should least likely take which of the following actions? A. Provide a disclaimer in marketing materials indicating prices are as of a specific date. B. Report the discrepancy to CFA Institutes Professional Conduct Program. C. Correct the asset information and provide updates to pros
4、pective clients. 2. Christina Ng, a Level I CFA candidate, defaulted on a bank loan she obtained to pay for her masters degree tuition when her wedding cost more than expected. A micro finance loan company lent her money to pay off the tuition loan in full, including penalties and interest. The micr
5、o finance loan company even extended further credit to pay for her parents outstanding medical bills. Unfortunately, her parents health problems escalated to the point that Ng had to take extensive time away from work to deal with the issues. She was subsequently fired and consequently defaulted on
6、the second loan. Because she was no longer employed, Ng decided to file for personal bankruptcy. Do the loan defaults leading up to Ngs bankruptcy most likely violate Standard I(D): Misconduct? A. No B. Yes, with regard to the first loan default C. Yes, with regard to the second loan default 3. Kim
7、Klausner, CFA, monitors several hundred employees as head of compliance for a large investment advisory firm. Klausner has always ensured that his companys compliance program met or exceeded those of its competitors. Klausner, who is going on a long vacation, has delegated his supervisory responsibi
8、lities to Sue Chang. Klausner informs Chang that her responsibilities include detecting and preventing violations of any capital market rules and regulations and the CFA Institute Standards of Professional Conduct. Klausner least likely violated the CFA Institute Standards of Professional Conduct by
9、 failing to instruct Chang to also consider: A. industry standards. B. firm policies. C. legal restrictions. 4. When a client asks her how she makes investment decisions, Petra Vogler, CFA, tells the client she uses mosaic theory. According to Vogler, the theory involves analyzing public and nonmate
10、rial nonpublic information, including the evaluation of statements made to her by company insiders in one-on-one meetings in which management discusses new earnings projections not known to the public. Vogler also gathers general industry information from industry experts she has contacted. Vogler m
11、ost likely violates the CFA Institute Standards of Professional Conduct because of her use of: A. nonmaterial nonpublic information. B. one-on-one meeting information. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义3172168919041893 March Mock Exam - AM 399388 Page 2 C. industry expert information. 5. Bailey
12、 Watson, CFA, manages 25 emerging market pension funds. He recently had the opportunity to buy 100,000 shares in a publicly listed company whose prospects are considered “above industry norm“ by most analysts. The companys shares rarely trade because most managers use a buy-and-hold strategy because
13、 of the companys small free float. Before placing the order with his dealer, Watson allocated the shares to be purchased according to the weighted value of each of his clients portfolios. When it came time to execute the trades, the dealer was able to purchase only 50,000 shares. To prevent violatin
14、g Standard III(B): Fair Dealing, it would be most appropriate for Watson to reallocate the 50,000 shares purchased by: A. reducing each pension funds allocation proportionately. B. distributing them equally among all the pension fund portfolios. C. allocating randomly but giving funds left out prior
15、ity on the next similar type trade. 6. Lin Liang, CFA, is an investment manager and an auto industry expert. Last month, Liang sent securities regulators an anonymous letter outlining various accounting irregularities at Road Rubber Company. Shortly before he sent the letter to the regulators, Liang
16、 shorted Road stock for his clients. Once the regulators opened an investigation, which Liang learned about from his sources inside the company, Liang leaked this information to multiple sources in the media. When news of the investigation became public, the share price of Road immediately dropped 3
17、0%. Liang then covered the short positions and made $5 per share for his clients. Liang least likely violated which of the CFA Institute Standards of Professional Conduct? A. Priority of Transactions B. Misconduct C. Market Manipulation 7. Jennifer Ducumon, CFA, is a portfolio manager for high-net-w
18、orth individuals at Northeast Investment Bank. Northeast holds a large number of shares in Baby Skin Care Inc., a manufacturer of baby care products. Northeast obtained the Baby Skin Care shares when it underwrote the companys recent IPO. Ducumon has been asked by the investment banking department t
19、o recommend Baby Skin Care to her clients, who currently do not hold any shares of Baby Skin Care in their portfolios. Although Ducumon has a favorable opinion of Baby Skin Care, she does not consider the shares a buy at the IPO price or at current price levels. According to the CFA Institute Standa
20、rds of Professional Conduct, the most appropriateaction for Ducumon is to: A. recommend the shares after additional analysis. B. ignore the request. C. follow the request as soon as the share price declines. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义3172168919041893 March Mock Exam - AM 399388 Page 3 8
21、. Rodney Rodrigues, CFA, is responsible for identifying professionals to manage specific asset classes for his firm. In selecting external advisers or subadvisers, Rodrigues reviews the advisers investment process, established code of ethics, the quality of the published return information, and the
22、compliance and integrated control framework of the organization. In completing his review, Rodrigues most likely violated the CFA Institute Standards of Professional Conduct with regard to his due diligence on: A. internal control procedures. B. adherence to strategy. C. performance measures. 9. Sol
23、omon Sulzberg, CFA, is a research analyst at Blue Water Management. Sulzbergs recommendations typically go through a number of internal reviews before they are published. In developing his recommendations, Sulzberg uses a model developed by a quantitative analyst within the firm. Sulzberg made some
24、minor changes to the model but retained the primary framework. In his reports, Sulzberg attributes the model to both the quantitative analyst and himself. Before the internal reviews of his reports are completed, Sulzberg buys shares in one of the companies. After the internal review is complete, he
25、 fails to recommend the purchase of the stock to his clients and erases all of his research related to this company. Sulzberg least likely violated the CFA Institute Standards of Professional Conduct related to: A. Misrepresentation. B. Record Retention. C. Priority of Transactions. 10. Jackson Barn
26、es, CFA, works for an insurance company providing financial planning services to clients for a fee. Barnes has developed a network of specialistsincluding accountants, lawyers, and brokerswho contribute their expertise to the financial planning process. Each of the specialists is an independent cont
27、ractor. Each contractor bills Barnes separately for the work he or she performs, providing a discount based on the number of clients Barnes has referred. What steps should Barnes take to be consistent with the CFA Institute Standards of Professional Conduct? A. Inform potential clients about his arr
28、angement with the contractors before they agree to hire him B. List the consideration he receives from the specialists on monthly client invoices C. Have his independent contractors approved by the insurance company 11. On a flight to Europe, Romy Haas, CFA, strikes up a conversation with a fellow p
29、assenger, Vincent Trujillo. When Trujillo learns Haas is in the investment profession, he asks about the CFA designation. Haas tells him the following about the CFA designation: Statement 1: Individuals who have completed the CFA Program have the right to use the CFA designation. Statement 2: The CF
30、A designation is globally recognized, which is why it can be used as part of a firms name. Statement 3: CFA charterholders must satisfy membership requirements to continue using the designation. A. Statement 1 B. Statement 3 C. Statement 2 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义3172168919041893 Marc
31、h Mock Exam - AM 399388 Page 4 12. Wouter Duyck, CFA, is the sole proprietor of an investment advisory firm serving several hundred middle-class retail clients. Duyck claims to be different from his competitors because he conducts research himself. He discloses that to simplify the management of all
32、 these accounts, he has created a recommended list of stocks from which he selects investments for all of his clients based on their suitability. Duycks recommended list of stocks is obtained from his primary broker, who has completed due diligence on each stock. Duycks recommended list least likely
33、 violates which of the following CFA Institute Standards of Professional Conduct? A. Diligence and Reasonable Basis B. Fair Dealing C. Misrepresentation 13. Abdul Naib, CFA, was recently asked by his employer to submit an updated document providing the history of his employment and qualifications. T
34、he existing document on file was submitted when he was hired five years ago. His employer notices the updated version shows Naib obtained his MBA two years ago, whereas the earlier version indicated he had already obtained his MBA at the time of his hire. Because the position Naib was hired for had
35、a minimum qualification of an MBA, Naib is asked to explain the discrepancy. He justifies his actions by stating: “I knew you would not hire me if I did not have an MBA, but I already had my CFA designation. Knowing you required an MBA, I went back to school on a part-time basis after I was hired to
36、 obtain it. I graduated at the top of my class, but this should not come as any surprise because you have seen evidence I passed all of my CFA exams on the first attempt.“ Did Naib most likely violate the CFA Institute Standards of Professional Conduct? A. Yes, with regard to Misconduct B. No C. Yes
37、, with regard to Reference to the CFA Designation 14. Tonya Tucker, CFA, is a financial analyst at Bowron Consolidated. Bowron has numerous subsidiaries and is actively involved in mergers and acquisitions to expand its businesses. Tucker analyzes a number of companies, including Hanchin Corporation
38、. When Tucker speaks with the CEO of Bowron, she indicates many of the companies she has looked at would be attractive acquisition targets for Bowron. After her discussion with the CEO, Tucker purchases 100,000 shares of Hanchin Corporation at $200 per share. Bowron does not have any pre-clearance p
39、rocedures, so the next time she meets with the CEO, Tucker mentions she owns shares of Hanchin. The CEO thanks her for this information but does not ask for any details. Two weeks later, Tucker sees a companywide e-mail from the CEO announcing Bowrons acquisition of Hanchin for $250 a share. In rega
40、rd to her purchase of Hanchin stock, Tucker least likely violated the CFA Institute Standards of Professional Conduct concerning: A. Priority of Transactions. B. Loyalty. C. Material Nonpublic Information. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义3172168919041893 March Mock Exam - AM 399388 Page 5 15.
41、 Kelly Amadon, CFA, an investment adviser, has two clients: Ryan Randolf, 65 years old, and Keiko Kitagawa, 45 years old. Both clients earn the same amount in salary. Randolf, however, has a large amount of assets, whereas Kitagawa has few assets outside her investment portfolio. Randolf is single a
42、nd willing to invest a portion of his assets very aggressively; Kitagawa wants to achieve a steady rate of return with low volatility so she can pay for her childs current college expenses. Amadon recommends investing 20% of both clients portfolios in the stock of very low-yielding small-cap compani
43、es. Amadon least likely violated the CFA Institute Standards of Professional Conduct in regard to his investment recommendations for: A. only Randolfs portfolio. B. only Kitagawas portfolio. C. both clients portfolios. 16. Danielle Deschutes, CFA, is a portfolio manager who is part of a 10-person te
44、am that manages equity portfolios for institutional clients. A competing firm, South West Managers, asks Deschutes to interview for a position with its firm and to bring her performance history to the interview. Deschutes receives written permission from her current employer to bring the performance
45、 history of the stock portfolio with her. At the interview, she discloses that the performance numbers represent the work of her team and describes the role of each member. To bolster her credibility Deschutes also provides the names of institutional clients and related assets constituting the portf
46、olio. During her interview, Deschutes most likely violated the CFA Institute Standards of Professional Conduct with regard to: A. her contribution to the portfolios returns. B. providing details of the institutional clients. C. the stock portfolios performance history. 17. Charles Mbuwanga, a Level
47、III CFA candidate, is the business development manager for Sokoza Investment Group, an investment management firm with high-net-worth retail clients throughout Africa. Sokoza introduced listed Kenyan REITs (real estate investment trusts) to its line of investment products based on new regulations in
48、troduced in Kenya to diversify its product offering to clients. The product introduction comes after months of researching Kenyan property correlations with other property markets and asset classes in Africa. Sokoza assigns Mbuwanga as part of the sales team that will introduce this product to its c
49、lients across Africa. Mbuwanga subsequently determines most of Sokozas clients portfolios would benefit from having a small Kenyan property exposure to help diversify their investment portfolios. By promoting the Kenyan REITs for Sokozas client portfolios as planned, Mbuwanga would least likely violate which of the following standards? A. Independence and Objectivity B. Suitability C. Knowledge of the Law 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义3172168919041893 March Moc
