36、Chuck Thomas is the trustee of a trust of which Jill Wyatt is the main beneficiary. Wyatt's husband is the president of a company. In emptying the recycling bin at home, Wyatt finds some papers that lead her to believe that her husband’s company will make a tender offer to acquire another firm. Wyatt takes the information to Thomas, who uses it to purchase shares of the company for the trust, but does not further disclose the information. Thomas has: A) violated the Standards concerning loyalty, prudence, and care. B) violated the Standards concerning material nonpublic information. C) violated the Standards concerning preservation of confidentiality. D) not violated any Standards. The correct answer was B) Thomas cannot act or cause others to act on material nonpublic information. 37、Jessica French is in individual investment advisor with 200 clients and claims she conforms to Global Investment Performance Standards (GIPS). French includes all of the clients on her books. One of those clients is her father, to whom she charges no fee. However, she manages that portfolio using the same processes as she uses for her paying clients. Another client included in the composite is John Randolph, a wealthy entrepreneur. Randolph is the only client who does not give her discretion over the assets and makes every decision himself, getting suggestions from French and using her to implement decisions. French: A) has violated GIPS because it includes her father's account, but not because it includes Randolph's account. B) conforms to GIPS, if disclosures are made about the non-fee-paying account. C) has violated GIPS because it includes Randolph's account, but not because it includes her father's account. D) conforms to GIPS. The correct answer was C) Non-fee-paying clients can be included in the same composite as fee-paying clients as long as it is disclosed. Nondiscretionary clients should not be included in the composite as the clients would not adhere to the investment strategy used by the investment advisor. 38、Jim Taylor works as a portfolio manager for Rose Capital and also serves as president of the Little League board of directors in his town. He receives no money from Little League, however the local golf club provides him with a free membership for volunteering his time on the Little League board. Taylor's involvement with Little League is in his company biography, but the club membership has not been disclosed to Rose or his clients. Taylor has: A) violated the Standards by not disclosing the club membership to Rose and failing to disclose it to clients. B) violated the Standards by not disclosing the club membership to Rose, but not by failing to disclose it to clients. C) violated the Standards by not disclosing the club membership to clients, but not by failing to disclose it to Rose. D) not violated the Standards. The correct answer was B) He must disclose any compensation to his employer according to the Standard on disclosure of additional compensation arrangements. However, the golf club membership does not likely represent any conflict of interest with clients. 39、Cynthia Abbott, a CFA charterholder, is preparing a research report on Boswell Company for her employer, Capital Asset Management. Bob Carter, president of Boswell, invites Cummings and several other analysts to visit his company and offers to pay her transportation and lodging. Abbott declines Carter’s offer but, while visiting the company, accepts a gift from Carter valued at $75. Abbott fails to disclose the gift to her supervisor at Capital when she returns. In the course of the company visit, Abbott overhears a conversation between Carter and his chief financial officer that the company’s earnings per share (EPS) are expected to be $1.10 for the next quarter. Abbott was surprised that this EPS is substantially above her initial earnings estimate of $0.70 per share. Without further investigation, Abbott decides to include the $1.10 EPS in her research report on Boswell. Using the high EPS positively affects her recommendation of Boswell. Which of the following statements about whether Abbott violated Standard V(A), Diligence and Reasonable Basis and Standard I(B), Independence and Objectivity is TRUE? Abbott: A) violated both Standard V(A) and Standard I(B). B) violated Standard V(A) but she did not violate Standard I(B). C) did not violate either Standard V(A) or Standard I(B). D) did not violate Standard V(A) but she violated Standard I(B). The correct answer was B) Abbott violated Standard V(A), Diligence and Reasonable Basis, because she did not have a reasonable and adequate basis to support the $1.10 EPS without further investigation. By including the $1.10 EPS in her report, she did not exercise diligence and thoroughness to ensure that any research report finding is accurate. If Abbott suspects that any information in a source is not accurate, she should refrain from relying on that information. Abbott did not violate Standard I(B), Independence and Objectivity, because the gift from Carter was merely a token item. 40、Jim Crockett is a portfolio manager for Miami Advisors and reports to Vicki Tubbs, the Chief Investment Officer. Miami has developed a proprietary model that has been thoroughly researched and is known throughout the industry as the Miami model. The model is purely quantitative and takes a given set of client characteristics and universe of potential securities and forms a portfolio for the investor. Individual portfolio managers are responsible for selecting securities to fit into the model based on recommendations from the firm's research department and the managers' own judgment. Because of the specific nature of the inputs to the model, each manager is responsible for applying the model on his or her own computer. The basic philosophy of the process is thoroughly explained to clients. Crockett does not understand the basics of the model, but feels that since it provides pure quantitative output, he does not need to understand it. However, he misapplies the model for several of his clients. In reviewing some of Crockett's portfolios, Tubbs finds the errors and points them out to Crockett. Which of the following statements regarding Tubbs and Crockett are TRUE? A) Crockett has violated the Standards by not distinguishing between facts and opinion in presenting an investment recommendation. B) Crockett has violated the Standards by not considering the appropriateness and suitability of the investment for his clients. C) Tubbs has violated the Standards by failing to supervise adequately. D) Crockett has violated the Standards by not exercising diligence and thoroughness in making investment recommendations. The correct answer was D) Crockett had a responsibility to know the model well enough to detect the mistakes that could occur from misapplication, so he violated the Standard of diligence and reasonable basis. | 
发表于 2008-4-2 11:22
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