Question 11

Standard V(A), Diligence and Reasonable Basis, least likely requires members to:

A)    get employer approval for all investment recommendations involving high dollar amounts.

B)   exercise diligence and thoroughness in making investment recommendations or in taking investment actions.

C)   have a reasonable and adequate basis, supported by appropriate research and investigation, for such recommendations or actions.

D)   make a reasonable and diligent effort, when using third party research, to determine whether the research is sound.

Question 12

Mary Okasaki, CFA, was approached by her client, Robert Jordan, about his interest in making a charitable contribution to a charity that would benefit children. He told her that he wanted the donation to be $100,000, that he wanted to donate appreciated securities from his account with Okasaki, and that he wanted the contribution to bring him tax advantages. Okasaki has a friend who is the local director of a children's charity. Okasaki will:

A)    not violate the Code and Standards if she informs the local director of the charity that her client, Robert Jordan, is interested in making a significant contribution to the charity and that Jordan will be contacting the charity.

B)   violate the Code and Standards if she informs the local director of the charity that the director should call Jordan about a possible donation.

C)   violate the Code and Standards if she informs the local director of the charity that she has an unnamed client who is interested in making a significant contribution to the charity and that the client will be contacting the charity.

D)   not violate the Code and Standards if she arranges a lunch meeting with the local director of the charity and tells the director Jordan's name but no other details until they are in the meeting.

Question 13

Sarah Johnson, portfolio manager, is being paid a bonus directly by a client if Johnson meets certain performance goals. To comply with Standard IV(B) Additional Compensation Arrangements, Johnson should:

A)    not accept a bonus outside of her compensation from her employer.

B)   do nothing since the bonus arrangement aligns her interests with her client's interests.

C)   disclose this arrangement to her employer only if she actually meets the performance goals and receives the bonus.

D)   disclose this arrangement to her employer in writing.

Question 14

Fernando Abrea, CFA was an analyst for Pacific Investments.  In October he left Pacific and joined Global Securities as manager of a local office.  Abrea’s change of employment came about in the following manner:

• In April, Abrea contacted Global about a possible position he saw advertised in a financial publication and had exploratory meetings with Global.

• In July, Abrea submitted a strategic plan to Global and signed an agreement to join Global.  He then contracted for office space on behalf of Global.

• On October 15, Abrea resigned from Pacific.  He did not take any client lists from Pacific.

• On October 16, Abrea mailed a letter that explained his new undertaking with Global to prospective clients, including his former clients at Pacific. 

When did Abrea first violate the Code and Standards?

A)    In April.

B)   In July.

C)   He did not violate the Code and Standards.

D)   In October.

Question 15

Ellen Miamoto, CFA, is preparing a research report on an employment agency, Temp Help, Inc. She includes in her report a copy of a paragraph from a report by the Wall Street research firm of Benson Smith, a graph Miamoto has modified based on an original graph prepared by Gordon Thompson that was published in the Wall Street Journal, and a table of payroll employment data from the U.S. government's Bureau of Labor Statistics. In her report, Miamoto should identify and acknowledge:

A)    Benson Smith.

B)   Benson Smith, Gordon Thompson and the Bureau of Labor Statistics.

C)   none, as long as Miamoto has permission to use the material.

D)   Benson Smith and Gordon Thompson.

[此贴子已经被作者于2008-11-8 14:29:55编辑过]

Question 11

Standard V(A), Diligence and Reasonable Basis, least likely requires members to:

A)    get employer approval for all investment recommendations involving high dollar amounts.

B)   exercise diligence and thoroughness in making investment recommendations or in taking investment actions.

C)   have a reasonable and adequate basis, supported by appropriate research and investigation, for such recommendations or actions.

D)   make a reasonable and diligent effort, when using third party research, to determine whether the research is sound.

The correct answer was A) get employer approval for all investment recommendations involving high dollar amounts

A member does not need to get approval from the employer for investment recommendations involving high dollar amounts unless the employer requires it. The other answers are requirements of the Standard.

This question tested from Session 1, Reading 2-V, LOS A.

Question 12

Mary Okasaki, CFA, was approached by her client, Robert Jordan, about his interest in making a charitable contribution to a charity that would benefit children. He told her that he wanted the donation to be $100,000, that he wanted to donate appreciated securities from his account with Okasaki, and that he wanted the contribution to bring him tax advantages. Okasaki has a friend who is the local director of a children's charity. Okasaki will:

A)    not violate the Code and Standards if she informs the local director of the charity that her client, Robert Jordan, is interested in making a significant contribution to the charity and that Jordan will be contacting the charity.

B)   violate the Code and Standards if she informs the local director of the charity that the director should call Jordan about a possible donation.

C)   violate the Code and Standards if she informs the local director of the charity that she has an unnamed client who is interested in making a significant contribution to the charity and that the client will be contacting the charity.

D)   not violate the Code and Standards if she arranges a lunch meeting with the local director of the charity and tells the director Jordan's name but no other details until they are in the meeting.

The correct answer was B) violate the Code and Standards if she informs the local director of the charity that the director should call Jordan about a possible donation

Standard III(E) Preservation of Confidentiality requires members to keep information communicated to them by clients confidential, unless the information concerns illegal activities. Okasaki should not reveal the identity of her client to a person outside the firm without permission from the client.

This question tested from Session 1, Reading 2-III, LOS E.

Question 13

Sarah Johnson, portfolio manager, is being paid a bonus directly by a client if Johnson meets certain performance goals. To comply with Standard IV(B) Additional Compensation Arrangements, Johnson should:

A)    not accept a bonus outside of her compensation from her employer.

B)   do nothing since the bonus arrangement aligns her interests with her client's interests.

C)   disclose this arrangement to her employer only if she actually meets the performance goals and receives the bonus.

D)   disclose this arrangement to her employer in writing.

The correct answer was D) disclose this arrangement to her employer in writing.

Sarah should disclose her additional compensation arrangement, in writing, to all parties involved in accordance with Standard IV(B) Additional Compensation Arrangements.

This question tested from Session 1, Reading 2-IV, LOS B.

Question 14

Fernando Abrea, CFA was an analyst for Pacific Investments.  In October he left Pacific and joined Global Securities as manager of a local office.  Abrea’s change of employment came about in the following manner:

• In April, Abrea contacted Global about a possible position he saw advertised in a financial publication and had exploratory meetings with Global.

• In July, Abrea submitted a strategic plan to Global and signed an agreement to join Global.  He then contracted for office space on behalf of Global.

• On October 15, Abrea resigned from Pacific.  He did not take any client lists from Pacific.

• On October 16, Abrea mailed a letter that explained his new undertaking with Global to prospective clients, including his former clients at Pacific. 

When did Abrea first violate the Code and Standards?

A)    In April.

B)   In July.

C)   He did not violate the Code and Standards.

D)   In October.

The correct answer was C) He did not violate the Code and Standards

According to Standard IV(A), Loyalty to Employer, preparations to leave employment are not prohibited. Even though Abrea engaged in significant preparatory activities prior to beginning his new venture, none of these actions suggest Abrea did not continue to act in Pacific's interests while he was employed by Pacific.

This question tested from Session 1, Reading 2-IV, LOS A.

Question 15

Ellen Miamoto, CFA, is preparing a research report on an employment agency, Temp Help, Inc. She includes in her report a copy of a paragraph from a report by the Wall Street research firm of Benson Smith, a graph Miamoto has modified based on an original graph prepared by Gordon Thompson that was published in the Wall Street Journal, and a table of payroll employment data from the U.S. government's Bureau of Labor Statistics. In her report, Miamoto should identify and acknowledge:

A)    Benson Smith.

B)   Benson Smith, Gordon Thompson and the Bureau of Labor Statistics.

C)   none, as long as Miamoto has permission to use the material.

D)   Benson Smith and Gordon Thompson.

The correct answer was D) Benson Smith and Gordon Thompson.

Standard I(C) requires members to acknowledge and identify the author, publisher, or source of material they use in substantially the same form as the original. The use of Benson Smith’s original material and Gordon Thompson’s modified material must be acknowledged. The Bureau of Labor Statistics does not need to be cited because it is a recognized statistical reporting agency.

This question tested from Session 1, Reading 2-I, LOS C.

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