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 and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpose. 2012 Level I Mock Exam: Afternoon Session The afternoon session of the 2012 Level I Cha
3、rtered 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 Professio
4、nal Standards 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】 Q
5、Q106454842 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
6、 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. Questions 1 through 18 relate to Ethical and Professiona
7、l Standards 1. As a condition of his employment with an investment bank, Abasi Hasina, CFA, was required to sign an employment contract, including a non-compete clause restricting him from working for a competitor for three years after leaving the employer. After one year, Hasina quits his job for a
8、 comparable position with an investment bank in a country where non-compete clauses are illegal. Lawyers with whom he consulted prior to taking the new position determined the non- compete clause was a violation of human rights and thus illegal. Did Hasina most likely violate the CFA Institute Code
9、of Ethics? A. Yes B. No, because the non-compete clause violates his human rights C. No, because the non-compete clause is illegal in the new country of employment 2. Benefits of compliance with the CFA Institute Global Investment Performance Standards (GIPS ) least likely include: A. strengthening
10、of internal controls. B. participation in competitive bidding. C. elimination of in-depth due diligence for investors. 3. Who is most likely responsible for claiming and maintaining compliance with the CFA Institute Global Investment Performance Standards (GIPS )? A. Independent verification firms B
11、. The firm claiming compliance C. The performance measurement department 4. Mariam Musa, CFA, head of compliance at Dunfield Brokers, questions her colleague Omar Kassim, a CFA candidate and a research analyst, about his purchase of shares in a company for his own account immediately before he publi
12、shes a “buy” recommendation. He defends his actions by stating he has done nothing wrong because Dunfield does not have any personal trading policies in place. The CFA Institute Code of Ethics and Standards of Professional Conduct were most likely violated by: A. only Musa. B. only Kassim. C. both M
13、usa and Kassim. 【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 str
14、ictly 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. 5. Zhao Xuan, CFA, is a sell sid
15、e investment analyst. While at a software industry conference, Zhao hears rumors that Green Run Software may have falsified its financial results. When she returns to her office, Zhao conducts a thorough analysis of Green Run. Based on her research, including discussions with some of Green Runs cust
16、omers, Zhao is convinced that Green Runs reported 50% increase in net income during recent quarters is completely fictitious. So far, however, Zhao is the only analyst suspicious about Green Runs reported earnings. According to the CFA Institute Code of Ethics and Standards of Professional Conduct,
17、the least appropriate action for Zhao is to: A. report her suspicions to Green Runs management. B. do nothing, until other analysts support her analysis. C. recommend her clients sell their Green Run shares immediately. 6. Richard Cardinal, CFA, is the founder of Volcano Capital Research, an investm
18、ent management firm whose sole activity is short selling. Cardinal seeks out companies whose stocks have had large price increases. Cardinal also pays several lobbying firms to update him immediately on any legislative or regulatory changes that may impact his target companies. Cardinal sells short
19、those target companies he estimates are near the peak of their sales and earnings and that his sources identify as facing legal or regulatory challenges. Immediately after he sells a stock, Cardinal conducts a public relations campaign to disclose all of the negative information he has gathered on t
20、he company, even if the information is not yet public. Which of Cardinals following actions is least likely to be in violation of the CFA Institute Standards of Professional Conduct? A. Selling stock short B. Trading on information from lobbyists C. Disclosing information about target companies 7. K
21、irsten Kelso, CFA, is a research analyst at an independent research firm. Kelso is part of a team of analysts who focus on the automobile industry. Recently, Kelso disagreed with two research sell recommendations written by her team even though she felt confident the research process was properly co
22、nducted. In a webcast open to all institutional but not retail clients, Kelso states “even though my name is on the sell reports, these stocks are a buy in part because sales and share prices for both auto companies will rise significantly due to strong demand for their vehicles.” Kelsos actions wou
23、ld least likely violate which of the following CFA Institute Standards of Professional Conduct? A. Fair Dealing B. Communication with Clients C. Diligence and Reasonable Basis 【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
24、 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 registere
25、d CFA candidates and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpose. 8. Gardner Knight, CFA, is a product development specialist at an investment bank. Knight is responsible for creating and marketing collateralized debt obligations (CDOs) c
26、onsisting of residential mortgage bonds. In the marketing brochure for his most recent CDO, Knight provided a list of the mortgage bonds that the CDO was created from. The brochure also states “an independent third party, the collateral manager, had sole authority over the selection of all mortgage
27、bonds used as collateral in the CDO.” However, Knight met with the collateral manager and helped her select the bonds for the CDO. Knight is least likely to be in violation of which of the following CFA Institute Standards of Professional Conduct? A. Suitability B. Conflicts of Interest C. Client Co
28、mmunication 9. Monique Gretta, CFA, is a research analyst at East West Investment Bank. Previously, Gretta worked at a mutual fund management company and has a long-standing client relationship with the managers of the funds and their institutional investors. Gretta often provides fund managers, who
29、 work for Grettas former employer, with draft copies of her research before disseminating the information to all of the banks clients. This practice has helped Gretta avoid several errors in her reports, and she believes it is beneficial to the banks clients, even though they are not aware of this p
30、ractice. Regarding her research, Gretta least likely violated the CFA Institute Code of Ethics and Standards of Professional Conduct because: A. her report is a draft. B. this practice benefits all clients. C. the long-standing client relationships are not disclosed. 10. Colin Caldwell, CFA, is the
31、chief investment officer of Northwest Mutual Fund, whose investment objective is to invest in fixed income emerging market securities. Caldwell allocates the funds assets primarily to bonds of commodity producers in emerging markets and invests in a combination of several different investments to en
32、sure an acceptable level of risk. The allocation is clearly disclosed in all fund communications. High volatility in the commodities markets at the start of the year makes Caldwell pessimistic about returns, so he shifts the fund into emerging market and U.S. government securities, positions he main
33、tains at the end of the year. This change is noted in the next annual report to fund shareholders. Caldwells investment change least likely violated the CFA Institute Code of Ethics and Standards of Professional Conduct concerning: A. diversification. B. communication with clients. C. investments ou
34、tside his mandate. 【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
35、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. 11. Robin Herring, CFA, is a
36、government bond research analyst at an independent credit rating agency. A competitor credit rating agency just downgraded the bonds of a government Herring follows. Herring notes all of the information in the competitors report was covered in his analysis published last week. In the past, Herring h
37、as been slow to downgrade bonds, so he starts to doubt his own analysis after seeing the competitors report. Herring decides to reissue his credit rating of this government bond and match the competitors downgrade. In his revised report, Herring states that new information has been made available to
38、 justify the downgrade. Herring posts the revision on the credit rating agencys website and provides it by e-mail to all clients who received the original. Herrings rating change least likely violated which of the following CFA Institute Code of Ethics and Standards of Professional Conduct? A. Fair
39、Dealing B. Communication with Clients C. Diligence and Reasonable Basis 12. Dorian Solot, CFA, is responsible for a team of research analysts at Apac Bank, located in a country with strict laws prohibiting intellectual property transfers. Solot believes the work of one of her analysts, Blaine Paddoc
40、k, CFA, is not completed as carefully and thoroughly as it should be. Solot completely reviews all of Paddocks research and confirms her suspicions. Solot then confronts Paddock about his poor quality research and tells him he can leave Apac voluntarily or be fired. Paddock chooses to leave the bank
41、, walking out with his personal papers and research notes that were created prior to his joining Apac. Subsequently, Paddock uses this intellectual property to help establish a high-net-worth investment advisory firm. When a prospective client asks Paddock if he left Apac because of questions on the
42、 quality of his work, Paddock says it was to start his own business. Paddock least likely violated the CFA Institute Standards of Professional Conduct concerning his: A. research. B. intellectual property. C. prospective client disclosure. 13. Oliver Opdyke, CFA, works for an independent research or
43、ganization that does not manage any client money. In the course of his analysis of Red Ribbon Mining he hears rumors the president of Red Ribbon, Richard Leisberg, has recently been diagnosed with late stage Alzheimers disease, a fact not publicly known. The final stage of Alzheimers is when individ
44、uals lose the ability to respond to their environment, the ability to speak, and, ultimately, the ability to control movement. Leisberg is the charismatic founder of Red Ribbon, and under his leadership the company grew to become one of the largest in the industry. According to the CFA Institute Cod
45、e of Ethics and Standards of Professional Conduct, the most appropriate action for Opdyke is to: A. immediately publish a sell recommendation for Red Ribbon Mining. B. confirm the presidents diagnosis before publishing his research report. C. encourage Red Ribbon Mining management to disclose the pr
46、esidents medical condition. 【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
47、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 and copying, posting to any website, e-mailing, distributing, and/or reprinting the mock exam for any purpose. 14. Raymond Ortiz, C
48、FA, provides investment advice to high-net-worth investors. Ortiz has just completed an analysis of Continental Wheat, a manufacturer of wheat-based food products. He rated the company a long-term hold for investors seeking growth and income. Ortizs analysis included a review of the companys managem
49、ent team, financial data, pro forma financial positions, dividends and dividend policy, and a comparison of Continental with its competitors. Although he does not tell anyone, five years ago, Ortiz worked for and managed the commodities derivatives trading unit of Continental. As part of his compensation