1. Bailey Watson, CFA manages 25 emerging market pension funds. He recently had the opportunity to buy 100,000 shares in a publicly listed company who prospects are considered “above industry norm” by most analysts. The company’s shares rarely trade becau most managers take a “buy and hold” strategy becau of the company’s small free float. Before placing the order with his dealer, Watson allocated the shares to be purchad according to the weighted value of each of his clients’ portfolios. When it came time to execute the trades, the dealer was only able to purcha 50,000 shares. To prevent violating Standard III (B) Fair Dealing, it would be most appropriate for Watson to reallocate the 50,000 shares purchad by:
刘维尔A. reducing each pension fund’s allocation proportionately.
B. distributing them equally amongst all the pension fund portfolios.
C. allocating randomly but giving funds left out priority on the next similar type trade.
Answer = A
“Guidance for Standards I–VII,” CFA Institute
正品英文2013 Modular Level I, Vol. 1, Reading 2, Standard III (B) Fair Dealing
Study Session 1–2–c
Recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.
abbreviationA is correct becau Standard III (B) Fair Dealing requires members and candidates to deal fairly and objectively with all clients. Certain clients cannot be favored over other clients when their investment objectives and circumstances are similar. Therefore, the most appropriate way to handle the reallocation of an illiquid share is to reduce each client’s proportion on a pro rata, or weighted basis.
2. Dilshan Kumar, CFA, is a world-renowned mining analyst bad in London. Recently, he received an invitation from Cerberus Mining, a London Stock Exchange listed company with headquarters in Johannesburg, South Africa. Cerberus asked Kumar to joi
triedn a group of prominent analysts from around the world on a tour of its mines in South Africa, some of which are in remote locations, not easily accessible. The invitation also includes an arranged wildlife safari to Krueger National Park for the analysts. Kumar accepts the invitation, planning to visit other mining companies he covers in Namibia and Botswana after the safari. To prevent violating any CFA Institute Standards of Professional Conduct, it is most recipeoappropriate for Kumar to only accept which type of paid travel arrangements from Cerberus? dictator
A. Ground transportation to Krueger National Park
B. Economy class round trip ticket from London to Johannesburg
C. Flights on a private airplane to the remote mining sites in South Africa
Answer = C
“Guidance for Standards I–VII,” CFA Institute
2013 Modular Level I, Vol. 1, Reading 2, Standard I (B) Independence and Objectivity
Study Session 1–2–c building是什么意思
莎拉大波娃Recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.
C is correct becau Standard I (B) Independence and Objectivity requires members and candidates to u reasonable care and judgment to maintain their independence and objectivity in their professional activities. Best practice dictates that Kumar only accept transportation to the remote mining sites in that it is unlikely he would be able to source commercial flights to the locations and ground transport may not be viable. Becau Kumar would normally visit mining sites around the world as part of his job and becau he is combining this trip with trip to other mine sites in different countries, it would be inappropriate for Cerberus to pay for the analyst’s travel expens from London. Although Kumar could go on safari with the group of analysts, he should pay his own way so as to restrict any influence such a gift could possibly have when making his investment recommendations on Cerberus.
3. Abdul Naib, CFA, was recently asked by his employer to submit an updated document providing the history of his employment and qualifications. The existing document on file was submitted when he was hired five years ago. His employer notices the updated version shows Naib obtained his Master of Business Administration (MBA) degree two years ago, whereas the earlier version indicated he had already obtained his MBA. Becau the position Naib was hired for had a minimum qualification of an MBA, Naib is asked to explain the discrepancy. He justifies his actions by stating: “I knew you wouldn’t hire me if I didn’t have an MBA degree, 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 obtain it. I graduated at the top of my class, but this shouldn’t come as any surpri, as you have en evidence I pasd all of my CFA exams on the first attempt.” Did Naib most likely violate the CFA Institute Standards of Professional Conduct?
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