| 2008 CFA Level 2 － Mock Exam 2 （PM）模考试题 Q1 (part 1 - Part 6)
Question 1 Michael
Smyth is Senior Vice President of equity investments at Systematic
Investment Advisors, Inc. (SIA). He manages a team of analysts and
portfolio managers and is responsible for maintaining and developing
client relationships. SIA is located in a small European country and
provides investment management services to high net worth individuals.
Smyth is also a Level III Candidate for the CFA designation. One
of Smyth’s clients is the Muller-Durand family. He had a long
relationship with Helmut Muller. Before Muller’s untimely death, he
gave Smyth full discretion over his portfolio based on an investment
policy statement that had been refined continuously over the years. - Muller
was the president of a publicly traded manufacturing company, Comax,
and 20% of his portfolio’s assets were invested in Comax equity. His
contract with Comax prohibited his selling his Comax shares while he
was employed.
- Muller
had little liquidity needs. His children were grown and his salary at
Comax was sufficient to cover his annual expenditures as well as
contribute to his investment portfolio.
- A
former Chartered Accountant, Muller had been extremely knowledgeable
and comfortable with the investment decision-making process.
- Smyth owns 10,000 shares of Comax and serves on Comax’s board.
- Smyth
played golf with Muller on a regular basis and, with Muller’s help,
developed many client relationships from these outings.
SIA has a soft dollar arrangement with a local brokerage firm, First Brokerage, owned by Smyth’s sister. - Muller had agreed in writing that all trades in his portfolio would be directed to First Brokerage.
- Smyth
purchased new carpets for his office with client brokerage. He believes
that his managers make better investment decisions when their
environment is pleasant and comfortable.
- Smyth attended an industry conference in the Bahamas
with soft dollars. The program is devoted to improving management of
the investment advisory firm. He believes that a well-run firm makes
better investment decisions.
- Smyth
consistently uses soft dollars to purchase research reports from an
independent research firm that does in-depth analysis of a company’s
financial reporting. Several of his managers have commented on the
quality and usefulness of these reports to their analysis and
decision-making.
Smyth
has an appointment to meet with Muller’s widow, Wilhelmina Durand.
Durand was an artist who had left management of their financial assets
to her husband. She is meeting with Smyth to better understand her
financial position. Part 1) Which of the following Standards is most relevant regarding Smyth’s meeting with Durand? A) Standard III(A), Loyalty, Prudence, and Care. B) Standard III(C), Suitability. C) Standard III(E), Preservation of Confidentiality. D) Standard III(B), Fair Dealing.
Part 2) Standard
VI(A), Disclosures of Conflicts, requires Smyth to disclose all
matters, including beneficial ownership of securities of other
investments, that could be expected to impair the member’s ability to
make unbiased and objective recommendations. Which of the following
matters would least likely be disclosed to Durand? A) Smyth played golf with Muller on a regular basis and developed client relationships. B) SIA has a soft dollar arrangement with a brokerage firm owned by Smyth’s sister. C) Smyth owns shares in Comax. D) Smyth is a director of Comax. Part 3) Which
of the following best describes Smyth’s compliance with the CFA
Institute Soft Dollar Standards in his use of client brokerage? A) Purchase of research reports and attending the conference are allowable uses of client brokerage. B) Purchase of both research reports and carpeting are allowable uses of client brokerage. C) Purchase of research reports is an allowable use of client brokerage. D) All purchases made by Smyth are allowable use of client brokerage.
Part 4) Smyth
would like to continue to direct brokerage from Durand’s portfolio to
his sister’s brokerage firm. In order to continue the arrangement and
comply with the CFA Institute Soft Dollar Standards, which of the
following disclosures are required? A) Smyth must clearly disclose that his duty as the investment manager is to continue to seek to obtain best execution. B) Smyth
must clearly disclose, with specificity and in “plain language,” its
policies with respect to all Soft Dollar Arrangements. C) Smyth
must disclose that directed brokerage arrangements that require the
investment manager to commit a certain percentage of brokerage might
affect his ability to seek to obtain best execution. D) Smyth must provide a description of the product or service obtained through brokerage generated from the client’s account. Part 5) After
determining Durand’s risk and return objectives, liquidity needs, tax
considerations, and unique circumstances, Smyth has decided that he
must reduce Durand’s holdings of Comax shares. He has several other
clients, whom he met through Muller, who also have significant holdings
in Comax. Smyth has also decided to reduce his own holdings in Comax
since his term as a director of Comax will be up in June. He does not
plan to seek reappointment but as a member of the audit committee he is
privy to information about a tender offer. Smyth realizes this is a
complex situation. Which
of the following Standards would be least likely to help Smyth decide
what actions with respect to selling shares of Comax would be in
compliance with the CFA Institute Standards of Practice? A) Standard III(C), Suitability. B) Standard VI(A), Disclosure of Conflicts. C) Standard III(B), Fair Dealing. D) Standard VI(B), Priority of Transactions.
Part 6) Since
Smyth is a director of Comax and a member of the audit committee, what
additional Standard is specifically applicable to Smyth’s decision to
sell his and his clients’ shares of Comax? A) Standard II, Integrity of Capital Markets. B) Standard VII, Responsibilities as a CFA Institute Member or CFA Candidate. C) Standard IV, Duties to Employers. D) Standard V, Investment Analysis, Recommendations and Action.
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发表于 2008-8-6 15:15
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