|
LOS g: Justify ethical conduct as a requirement for managing investment portfolios.
Q1. Which of the following statements regarding the ethical conduct necessary for managing portfolios is least accurate?
A) The portfolio manager should not presume that they have more knowledge than the client.
B) The standard of conduct is embodied by the CFA Institute Code and Standards.
C) The portfolio manager should meet standards of competence.
Q2. Jack Weatherford is a portfolio manager and is providing advice for Maria Conn, an accountant. From his brief conversation with Conn, Weatherford has learned that Conn is 43 years old and her goal is to save for retirement. Weatherford has been extremely busy lately but would like to get Conn started with an asset allocation as soon as possible. He tells her that he might temporarily put her assets in domestic equities and then reallocate her assets when he has time. Which of the following statements is most accurate? Weatherford should:
A) invest Conn’s funds in the domestic equities immediately so Conn does not miss out on potential bull markets.
B) not allocate her assets until he has developed an investment policy statement for her.
C) let Conn make investment decisions so that he avoids liability for potential investment losses.
Q3. Kelsey Opelt is a portfolio manager and is providing advice for Jay Steele, a retiree. Opelt has been working with Steele for many years. They have a good relationship and Opelt has taught Steele the basic of investments. Steele has fairly steady liquidity requirements. His house is paid for, he has good health insurance, and he has a steady pension. He only requires $1,000 a month in spending money that allows him to enjoy retirement. His children are grown and financially independent. His wife Harriet passed away five years ago. Because of Steele’s steady lifestyle, low liquidity requirements, and investment knowledge, Opelt has not adjusted Steele’s portfolio for capital market expectations in many years. The portfolio has performed quite well recently, due to an average return in the stock market of 25% over the past three years. Opelt should:
A) not perform any actions because Steele’s circumstances have not changed, and are not expected to change, for many years.
B) not interfere with the portfolio because it is performing so well.
C) monitor the portfolio and capital market expectations more closely. | 
发表于 2009-4-2 14:59
| 
