46、Betsy Fox is an investment advisor who has a client, Don Gordon, who is an employment lawyer. At lunch, Fox noticed Gordon and the Chief Financial Officer of Blue Star Company at the next table. She overhears them talking and ascertains that Blue Star is about to announce higher than expected earnings. Before the earnings release, Gordon contacts Fox and asks her to purchase 3,000 shares for his portfolio. Fox: A) can only purchase shares for her personal account after informing all of her clients about the potential of the increase in earnings. B) can purchase shares for Gordon, but cannot ever purchase shares for her personal account. C) must refuse to purchase shares for Gordon. D) must wait until after she purchases the 3,000 shares for Gordon to purchase shares for her personal account, and then must keep the information quiet. The correct answer was C) According to Standard II(A), Material Nonpublic Information, Fox cannot act or cause others to act on material nonpublic information until the information is made public. The information overheard at lunch was material and nonpublic; therefore, Fox must wait until the information is made public before accepting Gordon’s order. 47、Lynne Jennings is a research analyst for a large brokerage company following the chemical industry. While flying through Chicago, Jennings visited her sister who works in the airport hospitality center for an airline. Many meetings take place at the center on any given day. At the center Jennings saw several senior officers who she knows are from the largest and fourth largest chemical companies walk into a conference room. She concluded that negotiations for an acquisition might be taking place. She told her sister this, and her sister asked her not to disclose how she got the information. Jennings should: A) write a research report describing that she witnessed the senior officers together in the hospitality center, and must mention in the report that her sister is an employee of the center. B) not write a research report disclosing the meeting. C) write a research report mentioning the meeting but not disclose how she knew that the meeting occurred. D) write a research report describing that she witnessed the senior officers together in the hospitality center, but need not mention in the report that her sister is an employee of the center. The correct answer was B) The information is material and nonpublic, therefore, Jennings cannot trade or cause others to trade. 48、Patricia Young is an individual investment advisor who uses a computer model to place her clients into an appropriate portfolio. The model takes the clients’ goals and a range of simulated returns and presents the probability of achieving their goals. The investor then chooses the portfolio that provides a satisfactory probability of achieving their goals. By using this process, Young is: A) violating the Standard on misrepresenting the expected investment performance. B) violating the Standard on reasonable basis and representations. C) violating the Standard on suitability. D) not violating the Standards. The correct answer was C) The Standard on suitability calls for Young to assess risk tolerance, which is ignored by her process. 49、Tara Bailey was a very strong proponent of Biloxi, Inc. due to a friendship with its founder. She has let her positive feelings for the firm color her research report and has allowed her optimism to be translated into certainty. She has violated all of the following standards EXCEPT: A) Standard VI(A), Disclosure of Conflicts. B) Standard V(A), Diligence and Reasonable Basis. C) Standard I(B), Independence and Objectivity. D) Standard III(A), Loyalty, Prudence, and Care, with regard to Biloxi. The correct answer was D) She is violating all of the above except Standard III(A), Loyalty, Prudence, and Care. Biloxi is not a client and Bailey owes no fiduciary duty. Her objectivity is compromised by her relationship with the founder. She has not disclosed this to her employer, and she does not have a reasonable basis for representations about the firm. 50、Williams and Fudd is a major London-based brokerage and investment banking firm. Heritage Group, a money management firm, is the first, second, or third largest holder of each of the securities listed on Williams & Fudd's "PrimeShare #10" equity security list. On Tuesday morning, August 22, Williams & Fudd released a research report recommending the purchase of Skelmerdale Industries to the public and to its clients. On Wednesday afternoon, August 23, Heritage Group bought 1.5 million shares of Skelmerdale. This action is: A) a violation of the Standard concerning fair dealing. B) a violation of the Standard concerning priority of transactions but would conform if Heritage had waited at least 48 hours after the report was issued. C) in accordance with the CFA Institute Code and Standards. D) a violation of the Standard concerning disclosure of conflicts. The correct answer was C) These actions are in accordance with both Standards III(B), Fair Dealing, and VI(B), Priority of Transactions. There is no violation. | 
发表于 2008-4-2 11:26
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