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标题: Reading 2-I: Standards of Professional Conduct & Guidan [打印本页]

作者: bmaggie    时间: 2010-3-31 11:11     标题: [2010]Session 1: -Reading 2-I: Standards of Professional Conduct & Guidance:

Session 1: Ethical and Professional Standards
Reading 2-I: Standards of Professional Conduct & Guidance: Professionalism

LOS C.: Misrepresentation.

 

 

 

 

Marc Randall, CFA, is an investment analyst. During a meeting with a potential client, Randall's boss states that, "You can be sure our investments will always outperform Treasury Bonds because of our fine research staff members, like Marc." Randall knows that this statement is:

A)
a violation of fiduciary duties owed to clients under the Standards.
B)
not in violation of the Code and Standards.
C)
a violation of the Standard concerning prohibition against misrepresentation.


 

Under Standard I(C), members are forbidden from guaranteeing a specific rate of return on volatile investments. Therefore, the statement is in violation of the Standard.

[此贴子已经被作者于2010-3-31 11:26:12编辑过]


作者: bmaggie    时间: 2010-3-31 11:11

Ellen Miamoto, CFA, is preparing a research report on an employment agency, Temp Help, Inc. She includes in her report:

In her report, Miamoto must identify and acknowledge:

A)
Benson Smith, Gordon Thompson, and the Bureau of Labor Statistics.
B)
Benson Smith and Gordon Thompson.
C)
Benson Smith only.



Standard I(C) Misrepresentation requires members to acknowledge and identify the author, publisher, or source of material they use in substantially the same form as the original. The use of Benson Smith’s original material and Gordon Thompson’s modified material must be acknowledged. The exception to this requirement is information from recognized financial and statistical reporting services, such as the government agencies that compile national economic statistics.


作者: bmaggie    时间: 2010-3-31 11:12

A CFA charterholder gathers the closing prices of a security from a widely read publication. The charterholder uses the data as part of a report she is preparing and fails to report the data source in the report. This is:

A)
a violation of Standard I(C).
B)
not a violation of Standard I(C) if the data cannot be gathered from several public sources.
C)
not a violation of Standard I(C) if the data can be gathered from several public sources.



Since the security prices represent factual information that can be verified from several sources, there is no violation. It could have been a violation had the information been exclusively published by the source.


作者: bmaggie    时间: 2010-3-31 11:12

Which of the following is most likely permitted under Standard I(C), Misrepresentation?

A)
Using excerpts from reports prepared by others without acknowledgement.
B)
Including an exhibit of the current yield curve in a report to a client without stating its source.
C)
Citing quotes attributed to "investment experts" without specific reference.



The current yield curve is factual information that is available from many recognized financial or statistical reporting services.


作者: bmaggie    时间: 2010-3-31 11:13

A money manager works for a full-service brokerage firm. After meeting with a new client and gathering all relevant information, the money manager says that she thinks her firm can perform all the financial services the new client needs. With respect to Standard I(C), Misrepresentation, this:

A)
may not be a violation if the manager's opinion is based upon the factual information gathered.
B)
may not be a violation if the representation was made orally.
C)
is a violation because she cannot make statements like this under any circumstances.



There is no violation if the opinion is based upon the factual information gathered and the firm’s actual capabilities. This is true whether or not the representation was written, oral, or electronic. None of the other choices are correct.


作者: bmaggie    时间: 2010-3-31 11:13

A copyrighted technique for measuring the downside risk of an investment has just been revealed to the public. If an analyst adopts the technique, he must cite the use of the technique in all research reports in which the technique is used EXCEPT:

A)
if the analyst does not modify the technique at all.
B)
Neither of these answers provide grounds for an exception.
C)
if the analyst uses reasonable care and verifies that the technique provides superior results.



Neither of the answers in this question provide adequate grounds for not citing the source of the methodology. Although “verifying” the technique is a good idea and congruent with the Code and Standards, the analyst still needs to cite the use of the copyrighted technique even after modifying it slightly to avoid violation of Standard I(C), Misrepresentation.


作者: bmaggie    时间: 2010-3-31 11:13

According to CFA Institute Standards of Professional Conduct, which of the following is NOT a form of plagiarism?

A)
Using factual information published by recognized financial and statistical reporting services or similar sources without an acknowledgment.
B)
Citing specific quotations supposedly attributable to "leading analysts" and "investment experts" without specific reference.
C)
Presenting statistical estimates of forecasts prepared by others with the source identified, but without qualifying statements or caveats that may have been used.



Standard I(C) provides that "factual information published by recognized financial and statistical reporting services or similar sources" may be used without an acknowledgment.


作者: bmaggie    时间: 2010-3-31 11:13

Which of the following is NOT expressly prohibited by Standard I(C), Misrepresentation?

A)
providing information on guaranteed investment products.
B)
misrepresenting the services a member is capable of performing.
C)
misrepresenting a member’s academic or professional credentials.



Misrepresentation of qualifications, academic and professional credentials and services that can be performed by the firm are all expressly prohibited by Standard I(C).


作者: bmaggie    时间: 2010-3-31 11:14

At the time of its initial public offering (IPO), a mutual fund is invested primarily in junk bonds. As part of its strategy, it is also invested in some zero-coupon U.S. Treasury bonds. The amount of the investment in the Treasury bonds is such that their maturity value equals 90% of the current value of the fund. Which of the following may a CFA Institute member say to her clients concerning the fund at issuance?

A)
Since the fund is backed by the U.S. government, you know you will get your money back.
B)
A CFA Institute member may not make either of these statements.
C)
The fund is virtually default risk free.



Standard I(C), Misrepresentation, prohibits making statements that mention a guarantee of returns or misrepresent the true nature of the investment.


作者: bmaggie    时间: 2010-3-31 11:14

Jamie Pyles, a portfolio management trainee for a money management firm, is trying to create a client base. He phones prospective clients, telling them that he is a portfolio manager. He informs prospective clients that based on the last five years of performance of his firm, he can guarantee the client at least a 75% return. He informs them that his firm can provide all of the services that they will ever need. What is the minimum number of misrepresentations Jamie has made to the prospective clients in violation of Standard I(C), Misrepresentation?

A)
5.
B)
3.
C)
2.



There are at least three misrepresentations. First, that Jamie is a portfolio manager, when he's really a trainee. Second, that the firm can provide all of the services they will ever need. Third, that he can guarantee a 75% return.


作者: bmaggie    时间: 2010-3-31 11:14

Which of the following is NOT considered plagiarism under CFA Institute Standards?

A)
Using factual information from a recognized financial information agency without acknowledging the source of the information.
B)
Improving an existing report and using it inside the company under a new title without acknowledging the source of the original report.
C)
Adjusting an already published model and announcing it as a new model without acknowledging the source of the original model.



Factual information that is already public and is obtained from a recognized information agency can be used without acknowledgment and is not considered plagiarism. All other options are considered plagiarism.


作者: bmaggie    时间: 2010-3-31 11:15

Paul Thomas, CFA, is designing a new layout for research reports his firm writes and issues on individual stocks. In his design, Thomas includes a stock chart on the first page of each report. He does not reference that the charts are copied from an unrecognizable Finance web site. Thomas has:

A)
not violated CFA Institute Standards of Professional Conduct because these charts are widely available over the Internet.
B)
violated CFA Institute Standards of Professional Conduct because he did not state the source of the charts.
C)
violated CFA Institute Standards of Professional Conduct because he did not make sure that the information in these charts is accurate.



Standard I(C) Misrepresentation. Members should not copy or use material prepared by others without acknowledging and identifying the source of such material. Using charts and graphs without stating their source is a violation of the Standard.


作者: bmaggie    时间: 2010-3-31 11:15

An analyst preparing a report does NOT need to cite the use of which of the following?

A)
A recent quote from Alan Greenspan.
B)
Charts developed by a colleague in the same firm.
C)
Estimates of betas provided by Standard & Poor's.



Statistics provided by a recognized agency, such as Standard and Poor’s, do not need to be cited. Charts, quotes, and algorithms developed by individuals must be cited when they are used.


作者: bmaggie    时间: 2010-3-31 11:16

All of the following violate Standard I(C), Misrepresentation, EXCEPT:

A)
copying a proprietary computerized spreadsheet without seeking authorization from the creators.
B)
citing quotes attributable to "investment experts" without specific references.
C)
presenting factual information published by recognized statistical reporting services without acknowledgment.


 

Standard I(C), Misrepresentation, permits using recognized sources of factual information such as Standard & Poor’s Corporation and Moody’s Investors Service without acknowledgment.


作者: bmaggie    时间: 2010-3-31 11:16

According to CFA Institute Standards of Professional Conduct, which of the following statements about the prohibition against plagiarism is most correct? The prohibition against plagiarism applies to written materials:

A)
only.
B)
and oral communications only.
C)
oral communications, and telecommunications.



The prohibition against plagiarism applies to all three areas.


作者: bmaggie    时间: 2010-3-31 11:16

The following information involves two research analysts at a brokerage firm.

According to CFA Institute Standards of Professional Conduct involving prohibition against plagiarism, which of the following statements is TRUE?

A)
Wain violated the Standards, but Bagenot did not.
B)
Both Bagenot and Wain violated the Standards.
C)
Bagenot violated the Standards, but Wain did not.



Bagenot complied with Standard I(C), which permits publishing factual information from Standard & Poor's without acknowledgment and using excerpts with acknowledgment. Wain committed plagiarism because she failed to give specific references for the quotations that she used.


作者: bmaggie    时间: 2010-3-31 11:17

Which of the following is NOT a form of plagiarism?

A)
Presenting statistical forecasts by others with the sources identified but without the qualifying statements that may have been used by the originator.
B)
Using factual information published by a recognized financial statistics reporting service without acknowledgment.
C)
Citing quotations said to be attributable to "leading analysts" or "investment experts" without specific reference.



Members may not generally use material without acknowledging the original source, but an exception is made for factual information published by recognized financial and statistical reporting services.


作者: bmaggie    时间: 2010-3-31 11:17

 

Wes Smith, CFA, has been working toward the completion of a Master of Science in Finance. He has passed all the necessary courses and written the necessary thesis. He still must defend the thesis in one month. Smith’s thesis advisor assures him that he will pass the thesis defense. Smith has new business cards printed with “M.S. in Finance” after his name. This is a violation of:

A)
Standard VII(B), Reference to CFA Institute, the CFA Designation, and the CFA Program.
B)
none of the Standards if Smith does not make the cards public until after he defends his thesis and receives his degree.
C)
Standard I(C), Misrepresentation.



 

If the cards were distributed today he would be in violation of Standard I(C), Misrepresentation. However, if Smith does not make the cards public until after he receives the degree, there is no violation.


作者: zaestau    时间: 2010-5-6 02:43

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