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
2、 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. 2011 Level I Mock Exam: Morning Session The morning session of the 2011 Level I Chartered F
3、inancial Analyst 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 1-18 Ethical and Professional Standards
4、27 19-32 Quantitative Methods 21 33-44 Economics 18 45-68 Financial Statement Analysis 36 69-78 Corporate Finance 15 79-90 Equity Investments 18 91-96 Derivative Investments 9 97-108 Fixed Income Investments 18 109-114 Alternative Investments 9 115-120 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 res
6、ult 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. Questions 1 through 18 relate to Ethical and Professional Standar
7、ds. 1. Gabrielle Gabbe, CFA has been accused of professional misconduct by one of her competitors. The allegations concern Gabbes personal bankruptcy filing ten years ago when she was a college student and had a large amount of medical bills she could not pay. By not disclosing the bankruptcy filing
8、 to her clients, did Gabbe most likely violate any CFA Institute Standards of Professional Conduct? A. No. B. Yes, related to Misconduct. C. Yes, related to Misrepresentation. Answer = A “Guidance for Standards I-VII CFA Institute“ 2011 Modular Level I, Vol. 1, pp. 38-40, 46-47 Study Session 1-2-b D
9、istinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards. A is correct as a personal bankruptcy does not necessarily constitute a violation of Standard I (D). If the circumstances of the bankruptcy involved fraudulent or deceitful business c
10、onduct then failing to disclose it may constitute a violation of the Standards. 2. Bryan Barrett, CFA has an investment advisory service providing advice on gold and other commodities to several large retail banks. Barrett advertises his services in widely read publications to broaden his business t
11、o include retail clients. Because the client base for the institutions that Barrett serves is large, he is comfortable stating in the ads that thousands of his clients have benefited from his advice. Does Barretts advertisement most likely violate any CFA Institute Standards of Professional Conduct?
12、 A. No. B. Yes, related to Misrepresentation. C. Yes, related to Communication with Clients. Answer = B “Guidance for Standards I-VII CFA Institute“ 2011 Modular Level I, Vol. 1, pp. 38-40 Study Session 1-2-b Distinguish between conduct that conforms to the Code and Standards and conduct that violat
13、es the Code and Standards. 【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 activi
14、ties 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 exam for any purpose. B is correct because Barr
15、etts client base is made up of a small number of large institutions so stating in the advertisement that his client base is a larger number is a misrepresentation and a violation of Standard I(C). In addition, since the advertisement focuses only on the benefits and does not mention the potential ri
16、sks of these investments it is also potentially misleading to clients. 3. While at a bar in the financial district after work, Ellen Miffitt, CFA overhears several employees of a competitor discuss how they will manipulate down the price of a thinly traded micro cap stocks price over the next few da
17、ys. Miffitts clients have large positions of this stock so when she arrives at work the next day she immediately sells all of these holdings. Because she has determined that the micro cap stock was suitable for all of her accounts at its previously higher price, Miffitt buys back her clients origina
18、l exposure at the end of the week at the new, lower price. Which CFA Institute Standards of Professional Conduct did Miffitt least likely violate? A. Market Manipulation B. Preservation of Confidentiality C. Material Non Public Information Answer = B “Guidance for Standards I-VII CFA Institute“ 2011
19、 Modular Level I, Vol. 1, pp. 49-52, 59-60, 88 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 Miffitt has not violated the confidentiality Standard which involves information about former, curr
20、ent, and prospective clients. 4. Diana Fairbanks, CFA is married to an auditor who is employed at a large accounting firm. When her husband mentions a computer firm he audits will receive a qualified opinion she thinks nothing of it. Later that week when she reviews a new client account she notices
21、there are substantial holdings of this computer firm. When she does a thorough Internet search for news on the company, she does not find anything about its most recent audit or any other adverse information. Which of the following actions concerning the computer stock should Fairbanks most likely t
22、ake to avoid violating the CFA Institute Standards of Professional Conduct? A. Take no investment action. B. Complete a thorough and diligent analysis of the company and then sell the stock. C. Sell the stock immediately as she has a reasonable basis for taking this investment action. 【梦轩考资】 QQ10645
23、4842 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 resu
24、lt 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. Answer = A “Guidance for Standards I-VII CFA Institute“ 2011 Modul
25、ar Level I, Vol. 1, pp. 49-52 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 as the information concerning the qualified opinion is non-public and if it is material she would be in violat
26、ion of Standard II(A) if she took investment action based on the information. She should also make reasonable efforts to achieve public dissemination of the information. 5. Sherry Buckner, CFA manages equity accounts for government entities whose portfolios are conservative and risk averse. Since th
27、e objective of her clients is to maximize returns with the lowest possible risk, Buckner considers adding to their holdings a new, thinly- traded, leveraged derivative product which she believes has the potential for high returns. To make her investment decision, Buckner relies upon comprehensive re
28、search from an investment bank that has a solid reputation for top quality research. After her review of that research, Buckner positions her accounts so that each has a 10% allocation to the derivative product. Did Buckner most likely violate any CFA Institute Standards of Professional Conduct by p
29、urchasing the derivative for her clients? A. No. B. Yes, related to Suitability. C. Yes, related to Loyalty, Prudence and Care. Answer = B “Guidance for Standards I-VII CFA Institute“ 2011 Modular Level I, Vol. 1, pp. 78-81 Study Session 1-2-b Distinguish between conduct that conforms to the Code an
30、d Standards and conduct that violates the Code and Standards. B is correct as Buckner is in violation of Standard III (C) since she did not consider issues such as the limited liquidity or any potential leverage of this new product when she invested a substantial percentage of her clients portfolios
31、 in these instruments. 6. Teresa Staal, CFA is an investment officer in a bank trust department. She manages money for celebrities and public figures, including an influential local politician. She receives a request from the politicians political party headquarters to disclose his stock 【梦轩考资】 QQ10
32、6454842 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 r
33、esult 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. holdings. The request indicates local law requires the disclosu
34、re. What steps should Staal most likely take to ensure she does not violate any CFA Institute Standards of Professional Conduct? A. Provide the information and inform her client. B. Send the requested documents and inform her supervisor. C. Check with her firms compliance department to determine her
35、 legal responsibilities. Answer = C “Guidance for Standards I-VII CFA Institute“ 2011 Modular Level I, Vol. 1, pp. 88-89 Study Session 1-2-c Recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct. C is correct. In order to avoid
36、violating Standard III (E) Staal should determine if applicable securities regulations require disclosing the records before she provides the confidential information concerning her clients investments. 7. Sergio Morales, CFA believes he has found evidence his supervisor is engaged in fraudulent act
37、ivity concerning a clients account. When Morales confronts his supervisor, he is told the client is fully aware of the issue. Later that day, Morales contacts the client and upon disclosing his evidence, is told he should mind his own business. Concerned his job is at risk, Morales provides his evid
38、ence, along with copies of the clients most recent account statements, to a government whistle blower program. Morales is least likely to have violated which of the following CFA Institute Standards of Professional Conduct? A. Duties to Clients B. Duties to Employers C. Communication with Clients An
39、swer = C “Guidance for Standards I-VII CFA Institute“ 2011 Modular Level I, Vol. 1, pp. 63-64, 90-93, 116-118 Study Session 1-2-b Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards. C is correct because this Standard has not been viol
40、ated. Even though he talked to the client, the communication did not relate to the investment process. He has violated his duties to clients by disclosing confidential information to the government whistle blower 【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 f
41、ollowing 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. program. He has also violated a duty to his employer as contradicting employer instructions are not permitted unless the member is acting t
43、o protect the integrity of capital markets and the interests of clients. 8. Leng Bo, CFA is a bond portfolio manager for individual investors. Last year, a client whose portfolio is limited to investment-grade bonds approved Bos purchase of a below investment grade bond. Because yields in the high g
44、rade fixed income markets declined, Bo subsequently decides to enhance this clients portfolio by investing in several additional bonds with ratings one or two notches below investment grade. The investment strategy implemented by Bo most likely violated which of the following CFA Institute Standards
45、 of Professional Conduct? A. Suitability B. Communications with Clients C. Independence and Objectivity Answer = A “Guidance for Standards I-VII CFA Institute“ 2011 Modular Level I, Vol. 1, pp. 78-80 Study Session 1-2-b Distinguish between conduct that conforms to the Code and Standards and conduct
46、that violates the Code and Standards. A is correct because the client only approved the purchase of one below investment grade bond while the portfolio manager has purchased several additional bonds below investment grade without client approval in violation of Standard III (C). 9. Sisse Brimberg, C
47、FA is responsible for performance presentations at her investment firm. The presentation that Sisse uses states her firm: 1. deducts all fees and taxes; 2. uses actual and simulated performance results; 3. bases the performance on a representative individual account. Based on the above information,
48、which of the following is the most appropriate recommendation to help Brimberg meet the CFA Institute Standards of Professional Conduct in her performance presentations? She should present performance based on: A. a gross of fee basis. B. actual not simulated results. C. a weighted composite for all similar portfolios. 【梦轩考资】 QQ106454842 专业提供CFA FRM全程高清视频+讲义