Question 16 

Standard V(B), Communication with Clients and Prospective Clients, least likely requires members to: 

A) use reasonable judgment regarding the inclusion or exclusion of relevant factors in research reports.

B) distinguish between facts and opinions in research reports.

C) disclose the general principles of investment processes used to analyze and select securities, and construct portfolios.

D) make clear buy or sell recommendations on the securities covered in research reports.

Question 17 

Bertha Mader, CFA, received proxy material related to a hostile takeover attempt of Danube Industries by Balnet Company. She holds shares of Danube in most of her client accounts. Mader has a high opinion of Danube’s management because they have run the company successfully and have always responded directly and honestly to her inquiries. She is not acquainted with Balnet’s management team but knows they have a reputation for improving the bottom line at the companies they acquire, partly because they tend to replace upper management at their targets and assume their functions. Balnet's offer is 60% higher than the price of Danube shares before the announcement. Danube’s management has contacted Mader and requested that she vote the shares she controls against the takeover because the management is concerned for their jobs and for the welfare of the company. To

comply with the Code and Standards, Mader should: 

A) vote for the takeover if she can get assurance that Danube's management team will remain in place. 

B) vote against the takeover if it does not appear that the takeover is in the best interest of the company. 

C) vote for the takeover if it is in the best interest of Danube's shareholders, regardless of the consequences to current management.

D) delegate her proxy vote to another member of her firm due to the conflict of interest created when she was contacted by management. 

Question 18 

Which of the following actions most likely violates Standard I(D) – Misconduct? 

A) A Level 1 candidate is ejected from a hotel for attempting to pass a bad check.

B) A member’s market forecasts have been wrong in three consecutive quarters, prompting a formal complaint from a client.

C) A member pursues an employment opportunity with a competing firm, primarily as a means of securing a salary increase from her current employer.

D) A Level 2 candidate in Upper Moesia is repeatedly arrested for protesting against the country’s rulers.

Question 19 

John is getting a $25,000 loan, with an 8% annual interest rate to be paid in 48 equal monthly installments. If the first payment is due at the end of the first month, the principal and interest values for the first payment are closest to: 

    Principal        Interest

A)  $443.65          $200.00

B)  $443.65          $166.67

C)  $410.32          $200.00

D)  $410.32          $166.67

Question 20 

Which of the following statements about kurtosis is most accurate? 

A) Kurtosis is critical to risk management because most risk managers put more emphasis on the standard deviation of a distribution than the distribution of returns in the tail.

B) Most investors perceive a leptokurtic distribution as riskier than a platykurtic distribution.

C) A distribution that is less peaked (flatter) than normal is leptokurtic.

D) For all normal distributions, kurtosis equals 3, and excess kurtosis is kurtosis plus 3.

答案和详解如下：

Question 16 

The correct answer was D) make clear buy or sell recommendations on the securities covered in research reports. 

There is no obligation to make buy or sell recommendations on securities that are covered by research reports. 

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

Question 17 

The correct answer was C) vote for the takeover if it is in the best interest of Danube's shareholders, regardless of the consequences to current management. 

Standard III(A), Loyalty, Prudence, and Care, requires that members act for the benefit of their clients. Mader’s duty is to her clients, who are shareholders of Danube. She has no duty to Danube’s management, nor to the company itself, and must vote the shares accordingly. 

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

Question 18 

The correct answer was A)

Any activity that reflects adversely on a member’s professional reputation, integrity, or competence is a violation of Standard I(D) – Misconduct. The Standard does not prohibit a member or candidate from engaging in civil disobedience. As long as the member has a reasonable and adequate basis for all recommendations, simply being wrong does not call the member’s integrity or competence into question. 

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

Question 19 

The correct answer was B) 

 $443.65    $166.67Calculate the payment first:

N = 48; I/Y = 8/12 = 0.667; PV = 25,000; FV = 0; CPT PMT = 610.32.

Interest = 0.006667 × 25,000 = $166.67; Principal = 610.32 – 166.67 = $443.65 . 

This question tested from Session 2, Reading 5, LOS e

Question 20 

The correct answer was B)

A leptokurtic distribution is more peaked than normal. It will have more returns clustered around the mean and fatter tails (more returns with large deviations from the mean).  Relative to a normal distribution, a leptokurtic distribution will have a greater percentage of small deviations from the mean and a greater percentage of extremely large deviations from the mean. Most investors perceive a greater chance of large deviations from the mean as increasing risk. A platykurtic distribution is less peaked, or flatter than normal. Thus, investors perceive a leptokurtic distribution as riskier than a platykurtic distribution.

For all normal distributions, kurtosis is equal to 3.  Statisticians, however, sometimes report excess kurtosis, which is defined as kurtosis minus 3.  A normal distribution has excess kurtosis equal to zero, a leptokurtic distribution has excess kurtosis greater than zero, and platykurtic distribution will have excess kurtosis less than zero. Kurtosis is critical in a risk management setting.  Most risk managers put less emphasis on the mean and standard deviation of a distribution and focus more on the distribution of returns in the tails of the distribution – that is where the risk is.

This question tested from Session 2, Reading 7, LOS j

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错得好惨啊

good

^^

谢谢

thanks