Q4. Nicole Wise, CFA, is an analyst at Chicago Securities. She attends a meeting with management of one of the companies that she covers. During the meeting, management expresses great optimism about the company’s recent acquisition of a new business. Wise is excited about these prospects and issues a research report that states that the company is about to achieve significant success with the new acquisition. Wise has:

A)   violated CFA Institute Standards of Professional Conduct because she did not check the accuracy of the statements that management made.

B)   not violated CFA Institute Standards of Professional Conduct because she had reasonable reason to believe that the statements in her report were true.

C)   violated CFA Institute Standards of Professional Conduct because she misrepresented the optimism by turning it to certainty.

Q5. An analyst who routinely purges the files that support his research and recommendations:

A)   is acting in accordance to Standard III(E), Preservation of Confidentiality.

B)   is acting in accordance to Standard IV(A), Loyalty to Employer.

C)   may be violating Standard V(C), Record Retention.

Q6. An analyst finds a stock that has had a low beta given its historical return, but its total risk has been commensurate with its return. When writing a research report about the stock for clients with well-diversified portfolios, according to Standard V(B), Communication with Clients and Prospective Clients, the analyst needs to mention:

A)   both the historical beta and total risk and return.

B)   the relationship of the historical beta and return only.

C)   the relationship of the historical total risk to return only.

答案和详解如下：

Q4. Nicole Wise, CFA, is an analyst at Chicago Securities. She attends a meeting with management of one of the companies that she covers. During the meeting, management expresses great optimism about the company’s recent acquisition of a new business. Wise is excited about these prospects and issues a research report that states that the company is about to achieve significant success with the new acquisition. Wise has:

A)   violated CFA Institute Standards of Professional Conduct because she did not check the accuracy of the statements that management made.

B)   not violated CFA Institute Standards of Professional Conduct because she had reasonable reason to believe that the statements in her report were true.

C)   violated CFA Institute Standards of Professional Conduct because she misrepresented the optimism by turning it to certainty.

Correct answer is C)         

Standard V(B), Communication with Clients and Prospective Clients. Members must distinguish between fact and opinion in the presentation of a research report or investment recommendation. Wise violated the standard because she misrepresented management’s enthusiasm by turning it into certainty.

Q5. An analyst who routinely purges the files that support his research and recommendations:

A)   is acting in accordance to Standard III(E), Preservation of Confidentiality.

B)   is acting in accordance to Standard IV(A), Loyalty to Employer.

C)   may be violating Standard V(C), Record Retention.

Correct answer is C)         

According to Standard V(C), a member shall “maintain appropriate records” to support recommendations. Neither of the other choices would apply to this action.

Q6. An analyst finds a stock that has had a low beta given its historical return, but its total risk has been commensurate with its return. When writing a research report about the stock for clients with well-diversified portfolios, according to Standard V(B), Communication with Clients and Prospective Clients, the analyst needs to mention:

A)   both the historical beta and total risk and return.

B)   the relationship of the historical beta and return only.

C)   the relationship of the historical total risk to return only.

Correct answer is B)

Using reasonable judgment, an analyst may exclude certain factors from research reports. Since the report will be delivered to clients with well-diversified portfolios, total risk is not as important as beta. Given that the total risk has been only commensurate with historical return, furthermore, then the analyst is not negligent by not mentioning it.

CK