Q6. A given client has specified that her primary concern is preservation of principal. Last year the value of this client’s account has declined by 8 percent. Which of the following statements is TRUE? This:

A)    does not constitute a violation of the manager's fiduciary responsibility, regardless of the nature of the investment policy statement for the account.

B)    constitutes a violation of the manager's fiduciary responsibility regardless of whether the manager deviated from a properly constructed investment policy for this account.

C)    constitutes a violation of the manager's fiduciary responsibility only if the manager deviated from a properly constructed investment policy for this account.

Q7. At the time a client relationship is established, assume that an appropriate investment policy statement has been developed. Which of the following statements is CORRECT regarding the Prudent Investor Rule (PIR)? The PIR requires that the fiduciary:

A)    periodically review the client circumstances and make appropriate changes in the investment policy as warranted.

B)    develop an appropriate investment policy statement when the client relationship is established and update the investment policy only as is deemed necessary by the fiduciary.

C)    review the client circumstances and make changes when asked to do so by the client and make changes in the investment policy as warranted.

Q8. Erica Barnes, CFA, is a trustee for a pension fund. Which of the following is an example of Barnes' failure to follow general fiduciary standards set forth in the new Prudent Investor Rule? She recommends the fund should:

A)   hire an outside manager when they lack the in-house expertise to manage a small cap portfolio.

B)   consider the need for future growth while maintaining current income obligations.

C)   hire her relative to manage a new high yield portfolio.

Q9. Miles Turner, a CFA candidate, oversees a union pension fund. He got this job because of family connections as he is just learning the investment management business. Subsequently, he realizes that he is not ready to make the necessary decisions about the fund. He hires several portfolio managers. Under the Prudent Investor Rule, Turner is:

A)   not in compliance because he did not put in writing that funds were managed in-house prior to the hiring of outside managers.

B)   in compliance. Delegation of authority is allowed.

C)   not in compliance. Delegation of authority is not allowed.

Q10. A trustee must adhere to the following general fiduciary standards EXCEPT:

A)   caution.

B)   skill.

C)   partiality.

答案和详解如下：

Q6. A given client has specified that her primary concern is preservation of principal. Last year the value of this client’s account has declined by 8 percent. Which of the following statements is TRUE? This:

A)    does not constitute a violation of the manager's fiduciary responsibility, regardless of the nature of the investment policy statement for the account.

B)    constitutes a violation of the manager's fiduciary responsibility regardless of whether the manager deviated from a properly constructed investment policy for this account.

C)    constitutes a violation of the manager's fiduciary responsibility only if the manager deviated from a properly constructed investment policy for this account.

Correct answer is C)

The key concept is that the portfolio investment decision must be process-oriented. The nature of the process is a function of the client’s specific situation and tolerance for risk, and this is embodied in an investment policy statement. So long as the investment policy statement is properly conceived and is adhered to by the manager, there is no violation of fiduciary responsibility.

Q7. At the time a client relationship is established, assume that an appropriate investment policy statement has been developed. Which of the following statements is CORRECT regarding the Prudent Investor Rule (PIR)? The PIR requires that the fiduciary:

A)    periodically review the client circumstances and make appropriate changes in the investment policy as warranted.

B)    develop an appropriate investment policy statement when the client relationship is established and update the investment policy only as is deemed necessary by the fiduciary.

C)    review the client circumstances and make changes when asked to do so by the client and make changes in the investment policy as warranted.

Correct answer is A)

The PIR requires that an investment policy statement be developed when the relationship is established, and that such a statement be updated no less frequently than annually (more frequently if there is a major change in client circumstances).

Q8. Erica Barnes, CFA, is a trustee for a pension fund. Which of the following is an example of Barnes' failure to follow general fiduciary standards set forth in the new Prudent Investor Rule? She recommends the fund should:

A)   hire an outside manager when they lack the in-house expertise to manage a small cap portfolio.

B)   consider the need for future growth while maintaining current income obligations.

C)   hire her relative to manage a new high yield portfolio.

Correct answer is C)

Trustees must exercise care, skill, caution, loyalty, and impartiality. Recommending that the trustees approve her relative as new portfolio manager endangers Barnes' ability to avoid conflicts of interest and hence her duty of loyalty.

Q9. Miles Turner, a CFA candidate, oversees a union pension fund. He got this job because of family connections as he is just learning the investment management business. Subsequently, he realizes that he is not ready to make the necessary decisions about the fund. He hires several portfolio managers. Under the Prudent Investor Rule, Turner is:

A)   not in compliance because he did not put in writing that funds were managed in-house prior to the hiring of outside managers.

B)   in compliance. Delegation of authority is allowed.

C)   not in compliance. Delegation of authority is not allowed.

Correct answer is B)

Delegation of authority is allowed under the Prudent Investor Rule. There is no stipulation that Turner must try to do the job himself first.

Q10. A trustee must adhere to the following general fiduciary standards EXCEPT:

A)   caution.

B)   skill.

C)   partiality.

Correct answer is C)

Trustees must adhere to the standard of impartiality, not partiality.

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