CFA一、二级练习题精选及答案0516-10
CFA Level I
1. Alan Quanta, CFA, provides credit rating analysis of high-yield bonds using external credit ratings as a foundation. At the end of the last quarter, Quanta's firm, North Investment Bank, held a large position in the bonds of Veyron Corporation, a real estate company with all of its land holdings in a country recently downgraded by veral credit rating agencies. The downgrades made Veyron bonds extremely difficult to ll becau the bond price has dropped every day since the downgrades. Quanta has been asked by his supervisor to contact institutional clients of the firm to convince them that Veyron bonds are still an attractive purcha, especially at the lower prices. Quanta does not consider the Veyron bonds a buy at this price level. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, the most appropriate action for Quanta is to
A. obey his supervisor's request.
B. ignore his supervisor's request.
C. promote the bonds with appropriate disclosures.
Correct answer: B
"Guidance for Standards I–VII," CFA Institute
2013 Modular Level I, Vol. 1, Reading 2, Standard I (B) Independence and Objectivity, Guidance
Study Session 1-2-b
Distinguish between conduct that conforms to the CFA Institute Code of Ethics and Standards of Professional Conduct and conduct that violates the Code and Standards.
B is correct. Quanta should refu to promote the bonds, which he does not rate as a buy, becau his opinion of the Veyron bonds must not be affected by internal
pressure or compensation. If Quanta followed the request from his supervisor, he would be in violation of Standard I (B) Independence and Objectivity. Quanta must refu to promote Veyron bonds until they are an attractive purcha bad on fundamental analysis and market pricing
CFA Level II
1-6：The government of a developing countrypublished a Request for Proposal (RFP) for the development of policies toimprove the business conduct of its capital markets licenes with the hope ofimproving confidence levels among investors.
Kingfisher Financial Development Partnersresponded with a detailed proposal including the following justifications forwhy the firm should win the tender.
Justification1: With a team of three CFAcharterholders, Kingfisher is more qualified than our competitors to designpolicies to uphold and enhance capital market integrity.
Justification2: Each team member must annually renewhis or her commitment to abide by the CFA Institute Code of Ethics and Standardsof Professional Conduct.
Justification 3: In addition, every team member pasd the CFAexams on the first try.
Later, Kingfisher was notified that it wonthe tender. Kingfisher's team consists of team leader Khalid Juma, CFA, and histwo associates, Vimal Bachu, CFA, and Anila Patel, CFA. Kingfisher and thegovernment agree the first step to improve market integrity is to create anindustrywide Code of Conduct bad on the CFA Institute Code of Ethics andStandards of Professional Conduct. Although the Code
and Standards are notadopted in full, the decision is made to concentrate on four main areas:Professionalism, Capital Market Integrity, Duties to Clients, and InvestmentRecommendations.
The Kingfisher team subquently drafts thefollowing policy statements:
Levelsof Professionalism
Financial rvices professionals must actin a professional manner at all times to help protect the integrity of thecountry's capital markets. As such, financial rvices professionals mustensure they meet, at a minimum, three major requirements. Professionals must:(1) disclo all conflicts of interest; (2) lectively differentiate rvicesto clients; and (3) outline all manager compensation arrangements for clients.
