2012 Level Ⅰ Mock Exam: MorningSession
Questions 1 through 18 relate to Ethical and Professional Standards
开工证1．Which of the following least likely reflects the two primary principles of the CFA Institute Rules of Procedure for Proceedings Related to Professional Conduct?
A．Confidentiality of proceedings
B．Fair process to the member and candidate
C．Public disclosure of disciplinary sanctions
【答案】C
【解析】
“Code of Ethics and Standards of Professional Conduct,” CFA Institute
2012 Modular Level I, Vol. 1, p. 8至字开头的成语
Study Session 1-1-a
Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards.
C is correct becau the two principles of the Rules of Procedure for Proceedings Related to Professional Conduct are confidentiality of proceedings and fair process to the member and candidate.
2．Fundamental Ast Managers claims compliance with the CFA Institute Global Investment Performance Standards (GIPS®) and manages both discretionary and non-discretionary accounts. When constructing a single composite for Fundamental, Juma Dzuya includes all discretionary, fee-paying accounts with both value and growth strategies. Does the composite constructed by Dzuya most likely meet GIPS criteria?
A．Yes
B．No, becau of non-similar investment strategies
C．No, becau non-discretionary accounts are not included
【答案】B
【解析】
“Introduction to the Global Investment Performance Standards (GIPS®),” CFA Institute
2012 Modular Level I, Vol. 1, p. 173
Study Session 1-3-b
Explain the construction and purpo of composites in performance reporting.
B is correct becau a composite must include all actual, fee-paying, discretionary portfolios managed in accordance with the same investment mandate, objective, or strategy (Standards IV Composites).
By including both value and growth portfolios, the composite is made up of portfolios with different investment mandates or strategies.
3．Adira Badawi, CFA, who owns a rearch and consulting company, is an independent board member of a leading cement manufacturer in a small local market. Becau of Badawi’s experti in the cement industry, a foreign cement manufacturer looking to enter the localmarket has hired him to
undertake a feasibility study. Under what circumstances can Badawi most likely undertake the assignment without violating the CFA Institute Code of Ethics and Standards of Professional Conduct? If he:
A．makes full disclosure to both companies
B．receives written permission from the local company
C．signs confidentiality agreements with both companies
【答案】A
【解析】
“Guidance for Standards I–VII,” CFA Institute
2012 Modular Level I, Vol. 1, pp. 123–125
Study Session 1-2-c
圣诞节目Recommend practices and procedures designed to prevent violations of the Code of Ethics and Stan
dards of Professional Conduct.
A is correct becau making full and fair disclosure of all matters that could reasonably be expected to impair one’s independence and objectivity or interfere with respective duties to one’s clients is required by Stan dard VI Conflicts of Interest of the CFA Institute Code of Ethics and Standards of Professional Conduct.
4．Noor Mawar, CFA, manages a trust fund with the beneficiary being an orphaned 18-year-old student. The investment policy dictates that trust asts are expected to provide the student with a stable low risk source of income until she reaches the age of 30 years. Bad on information from an internet blog, the student asks Mawar to invest in a new business venture she expects will provide high returns over the next 5 years. Mawar ignores the request, instead curing conrvative investments to provide sufficient income. Did Mawar most likely violate the CFA Institute Code of Ethics and Standards of Professional Conduct? A．Yes
B．No, becau the client’s objectives were met
C．No, becau the investment time frame does not match the investment horizon 【答案】B
【解析】
"Guidance for Standards I–VII," CFA Institute
2012 Modular Level I, Vol. 1, pp. 78–80
Study Session 1-2-b
梦想让生活更美好作文Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.
经典寓言
B is correct becau the client is the trust/trustees, not the beneficiary. Mawar followed Standard III (C) Suitability by managing the trust asts in a way that would likely result in a stable source of income while keeping the risk profile low, thereby complying with the investment objectives of the trust.
5．Vishal Chandarana, an unemployed rearch analyst, recently registered for the CFA Level I exam. After two months of inten interviewing, he accepts a job with a stock brokerage company in a different region of the country. Chandarana posts on a social media blog how being a CFA candidate really helped him get a job. He also notes how relieved he was when his new employer didn’t ask him about being fired from his former employer. Which CFA Institute Code of Ethics or Standards of Professional Conduct did Chandarana least likely violate?
A．Misconduct
B．Loyalty to Employers
C．Reference to the CFA Program
【答案】C
【解析】
"Guidance for Standards I–VII," CFA Institute
2012 Modular Level I, Vol. 1, pp. 46–47, 90–91, 144–146
Study Session 1-2-a, b
Demonstrate and explain the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity. Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.
我家的小白兔C is correct becau there is no evidence Chandarana violated Standard VII (B) with regard to his b
eing a CFA candidate. Specifically, Chandarana does not overstate his competency or imply he will achieve superior performance as a
result of his CFA designation. It does appear Chandarana did not act with integrity when he hid information that could potentially harm his new employer’s reputation, thus violating Standard I (D) Professionalism (Misconduct) and Standard IV (A) Duty to Employers (Loyalty).
6．Kam Bergeron, CFA, is an equity portfolio manager who often takes time off in the afternoon to play golf with important clients. Today, Bergeron is on the golf cour when his game is interrupted by a phone call from his office. The call is from Bergeron's assistant, who notifies him of a steep and accelerating market decline. Bergeron, eager to get back to his golf game, tells his assistant to rai cash by lling 15% of all clients’ holdings. Bergeron instructs his assistant to first ll the most liquid stocks in each client’s portfolio and then do the same for his personal account. Bergeron is least likely to be in violation of which of the CFA Institute Standards of Professional Conduct?
A．Suitability
B．Priority of transactions阳光心情
C．Diligence and reasonable basis
超限效应
【答案】B
【解析】
CFA Institute Standards
2012 Modular Level I, Vol. 1, pp. 78–79, 107–108, 131
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 there is no indication a violation of Standard VI (B) Priority of Transactions occurred. The Standard concerns transactions for clients having priority over employees’ transactions and is not applicable in this ca becau the manager gives instructions to ll his personal holdings after tho of his clients.
