Ethics WTF Questions Part II

question, basis, principal, everything, net

#66 So programmers say everything is fine with a new system. What else are you supposed to do as a supervisor? CFAI wants you to micromanage?

#67 What the heck are they talking about. What's all this "order's may be executed on a net basis", "riskless principal trades."

#69-#70 Fine example of a deliberatly missleading question. Too infuriating to even get into.

lcai

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2^#

发表于 2011-7-11 19:50 | 只看该作者

Thank you for the post. I was doing these and found difficulty too.

Garcia immediately shorts the stock after an analyst issues a sell recommendation.
I would assume that he is in breach because he does not do enough research / have enough reasonable basis to do the trade.

I do not understand why Q.70 is not B. --> He does not have reasonable basis for the trade.

Correct answer is that he is in possession of material non public info.... Weird...

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Analti_Calte

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3^#

发表于 2011-7-11 19:50 | 只看该作者

Yes! You are referring to Q.57.. Quite tricky...

For Q.70, Why is the analyst downgrade or upgrade material non-public information?

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zwjy

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4^#

发表于 2011-7-11 19:50 | 只看该作者

your time might be better served covering other weaker areas than diving deep into the mysteries of one-off WTF questions. i get caught up doing this and have to stop myself. usually not worth your time to drive yourself crazy over deez

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skycfa

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5^#

发表于 2011-7-11 19:50 | 只看该作者

I agree - because at the end of the day there is enough grey in these Ethics question that some will be a crap shoot - experience and a practical bent of mind can work to your disadvantage on some of these points.

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Darien