Question 16

Bill Owens obtained his CFA charter in Sepember 2002 and began using the following letterhead:

Last year, Owens did not renew his membership in CFA Institute and must modify his letterhead accordingly. Owens is least likely required to delete the:

A)    “CFA” mark following his name.

B)   reference to CFA Institute membership.

C)   “CFA” mark following his name and the reference to CFA Institute membership.

D)   reference to the date when he received his CFA charter.

Question 17

Longhorn Investments prepares its performance presentations in accordance with Global Investment Performance Standards (GIPS). As part of its employee benefits package, Longhorn does not charge a fee to its employees for managing their portfolios. When calculating total firm assets for the purpose of GIPS compliance, Longhorn should:

A)    not include these portfolios because they are non-fee-paying accounts.

B)   include these portfolios.

C)   only include these portfolios if they contain discretionary assets.

D)   not include these portfolios if they are valued at less than 5% of total firm assets.

Question 18

Edwin McNeill, CFA, is a senior trader for Grey Securities. In his monthly review of his team’s activity, McNeill notices a series of suspicious trades by one of the traders. McNeill consults his manager, who agrees that these trades are a potential violation. McNeill informs the trader that her duties will be restricted while these trades are being investigated and refers the matter to Grey’s compliance officer for further action. McNeill has:

A)    violated Standard IV(C) – Responsibilities of Supervisors by failing to prevent a potential violation.

B)   violated Standard III(E) – Preservation of Confidentiality by consulting his manager about the suspicious trades.

C)   not violated the Standards.

D)   violated Standard IV(C) – Responsibilities of Supervisors by restricting the trader’s duties before the investigation is completed.

Question 19

The following set of data represents sample from a normally distributed population of prices of jeans at a large retailer: $28, $36, $32, $30, $34, $32. Which of the following statements about this sample is least accurate?

A)    The range equals $8.

B)   The mode is equal to the mean.

C)   The mean absolute deviation equals 2.

D)   The median equals $31.

Question 20

A firm holds two $50 million bonds with call dates this week.

• The probability that Bond A will be called is 0.80.

• The probability that Bond B will be called is 0.30.

The probability that at least one of the bonds will be called is closest to:

A)    0.24.

B)   0.80.

C)   0.50.

D)   0.86.

[此贴子已经被作者于2008-11-8 18:04:06编辑过]

Question 16

Bill Owens obtained his CFA charter in Sepember 2002 and began using the following letterhead:

Last year, Owens did not renew his membership in CFA Institute and must modify his letterhead accordingly. Owens is least likely required to delete the:

A)    “CFA” mark following his name.

B)   reference to CFA Institute membership.

C)   “CFA” mark following his name and the reference to CFA Institute membership.

D)   reference to the date when he received his CFA charter.

The correct answer was D) reference to the date when he received his CFA charter.

Use of the CFA mark and an indication of membership in CFA Institute is restricted to current members. However, a former member may indicate the fact that a CFA charter was awarded and the date of the award, as long as current membership is not implied and the statement is historical in nature.

This question tested from Session 1, Reading 2-VII, LOS B.

Question 17

Longhorn Investments prepares its performance presentations in accordance with Global Investment Performance Standards (GIPS). As part of its employee benefits package, Longhorn does not charge a fee to its employees for managing their portfolios. When calculating total firm assets for the purpose of GIPS compliance, Longhorn should:

A)    not include these portfolios because they are non-fee-paying accounts.

B)   include these portfolios.

C)   only include these portfolios if they contain discretionary assets.

D)   not include these portfolios if they are valued at less than 5% of total firm assets.

The correct answer was B)

When calculating a firm’s total assets, the market value of all discretionary and non-discretionary assets should be included, regardless of whether the account is fee-paying or not. The employees’ portfolios would be included regardless of the percentage of the total firm assets they comprise.

This question tested from Session 1, Reading 4, LOS a, (Part 2)

Question 18

Edwin McNeill, CFA, is a senior trader for Grey Securities. In his monthly review of his team’s activity, McNeill notices a series of suspicious trades by one of the traders. McNeill consults his manager, who agrees that these trades are a potential violation. McNeill informs the trader that her duties will be restricted while these trades are being investigated and refers the matter to Grey’s compliance officer for further action. McNeill has:

A)    violated Standard IV(C) – Responsibilities of Supervisors by failing to prevent a potential violation.

B)   violated Standard III(E) – Preservation of Confidentiality by consulting his manager about the suspicious trades.

C)   not violated the Standards.

D)   violated Standard IV(C) – Responsibilities of Supervisors by restricting the trader’s duties before the investigation is completed.

The correct answer was C) not violated the Standards.

By reviewing the employee’s conduct, restricting the employee’s activities while investigating a potential violation, and referring the matter to his manager and compliance officer, McNeill acted properly according to Standard IV(C) – Responsibilities of Supervisors. Wrongdoing by a subordinate does not mean the manager has violated Standard IV(C) as long as adequate procedures to detect and prevent violations are in place and the manager enforces them.

This question tested from Session 1, Reading 2-IV, LOS C.

Question 19

The following set of data represents sample from a normally distributed population of prices of jeans at a large retailer: $28, $36, $32, $30, $34, $32. Which of the following statements about this sample is least accurate?

A)    The range equals $8.

B)   The mode is equal to the mean.

C)   The mean absolute deviation equals 2.

D)   The median equals $31.

The correct answer was D) The median equals $31.

When we order the prices from least to greatest ($28, $30, $32, $32, $34, $36), we observe that the mode (most frequently occurring) is $32 and the median is $32. (Exam tip: This is all that is needed to identify the inaccurate choice.)

The mean is $32 [(28 + 30 + 32 + 32 + 34 + 36)/6]. The range is the difference between the largest and smallest values: $36 - $28 = $8. The mean absolute deviation is the sum of the absolute values of the deviations from the mean divided by the number of observations: [|28 - 32| + |30 - 32| + |32 - 32| + |32 - 32| + |34 - 32| + |36 - 32|]/6 = (4 + 2 + 0 + 0 + 2 + 4)/6 = 2.

This question tested from Session 2, Reading 7, LOS d

Question 20

A firm holds two $50 million bonds with call dates this week.

• The probability that Bond A will be called is 0.80.

• The probability that Bond B will be called is 0.30.

The probability that at least one of the bonds will be called is closest to:

A)    0.24.

B)   0.80.

C)   0.50.

D)   0.86.

The correct answer was D) 0.86.

We calculate the probability that at least one of the bonds will be called using the addition rule for probabilities:

P(A or B) = P(A) + P(B) – P(A and B), where P(A and B) = P(A) × P(B)

P(A or B) = 0.80 + 0.30 – (0.8 × 0.3) = 0.86

This question tested from Session 2, Reading 8, LOS e, (Part 2)

很好。

ding

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