Question 1 

Christopher Lance, CFA, and Chuck Cunningham, a Level 3 candidate, meet for dinner every month at Cunningham’s country club. Lance’s current job is Vice President, Investor Relations, at IMed where he is the principal spokesperson on the company’s financial performance. Cunningham is a research analyst who covers the pharmaceutical industry, including IMed. 

Lance and Cunningham meet for their regular monthly dinner, where Cunningham asks Lance if IMed will meet or beat analyst expectations and the consensus earnings forecast for the most recent quarter. Lance responds that, under current securities laws, he is unable to discuss details of IMed’s performance with Cunningham and that Cunningham will be briefed with the other analysts and shareholders on the next conference call. 

Which of the following Standards most likely governs Lance’s response to Cunningham’s question, and is Lance in compliance? 

Standard                                          Compliance

A) VII: Responsibilities as a CFA Institute Member or CFA Candidate            Yes

B) I: Professionalism                                                    Yes

C) III: Duties to Clients                                                  No

D) V: Investment Analysis, Recommendations, and Action                      No

Question 2  

Alvin Mell, CFA, is an investment advisor whose clients include Jack Allen, a famous professional athlete. Allen permits Mell to tell prospective clients that he is one of Mell’s clients, in exchange for reducing Allen’s management fee. In a meeting with a new prospect, Mell states, “I can’t promise you ahead of time how your investments will perform, but I was able to earn a 15% after-tax return for Jack Allen last year.” Mell has: 

A) violated Standard I(C) – Misrepresentation.

B) violated Standard III(E) – Preservation of Confidentiality.

C) violated both Standard I(C) – Misrepresentation and Standard III(E) – Preservation of Confidentiality.

D) not violated the Standards.

Question 3 

A CFA Institute member, undertaking independent practice that could result in compensation or other benefit: 

A) must notify his employer and clients of the types of service to be rendered and the expected compensation.

B) must notify the entities for whom he plans to undertake independent practice of the compensation he receives from his employer.

C) may engage in independent practice without notifying his employer.

D) must notify his employer of the types of service to be rendered, the expected duration, and the expected compensation.

Question 4 

Which of the following actions most likely violates Standard II(B) – Market Manipulation? 

A) Entering an order to buy a large block of a thinly-traded stock whenever its price falls below $10.

B) Selling a security and repurchasing it immediately to change its cost basis for taxation.

C) Waiting for a down day in the market to release a ratings downgrade to maximize its impact on a stock’s price.

D) Posting a company’s unexpectedly weak earnings report and negative comments to an Internet forum that is frequently visited by stock investors.

Question 5   

Millie Walker, CFA, established an aggressive growth portfolio for her client, Jesse Wilmer, over three years ago. Wilmer was placed on Walker’s employer’s client mailing list, and received monthly account statements and the firm’s newsletter, which regularly informed clients that they should contact their account representative with any change in their personal circumstances or investment objectives. As of January, of this year, Walker had not spoken to Wilmer nor received any correspondence from Wilmer since the account was established. Walker has: 

A) not violated the Code and Standards because there has been regular correspondence from Walker's firm to Wilmer. 

B) not violated the Code and Standards because Wilmer has been reminded regularly about the opportunity to inform Walker about any changes. 

C) violated the Code and Standards because the manager has not performed an update of Wilmer's financial situation and investment objectives.

D) not violated the Code and Standards because there is no requirement for ongoing communication between client and portfolio manager. 

答案和详解如下：

Answer 1 

The correct answer was B) I: Professionalism  Yes

Lance’s response to Cunningham’s question is covered under Standard I(A) – Professionalism, which requires members to maintain knowledge of and comply with applicable laws and regulations (including the CFA Institute’s Code of Ethics and Standards of Professional Conduct). In this case, Lance specifically references the requirements of securities laws not to discuss IMed’s performance in advance of the quarterly conference call. If he had done so, he would have disclosed material nonpublic information. In addition, Standard I(A) prohibits Lance from knowingly participating or assisting in any violation of such laws. If Lance had responded in any other way to Cunningham’s question he would potentially have assisted Cunningham in violating Standard II(A), Material Nonpublic Information. 

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

Answer 2  

The correct answer was B)  Even though Mell had Allen’s permission to tell prospects that Allen was a client, Mell violated Standard III(E) – Preservation of Confidentiality by disclosing Allen’s financial details. Mell did not guarantee an investment performance for the prospect and thus did not violate Standard I(C) – Misrepresentation. (However, under Standard III(D) – Performance Presentation, Mell’s statement is most likely inadequate for representing reasonably expected performance.) 

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

Answer 3 

The correct answer was D) must notify his employer of the types of service to be rendered, the expected duration, and the expected compensation. 

According to Standard IV(A), Loyalty to Employer, a CFA Institute member, undertaking independent practice that could result in compensation or other benefit, must notify his employer of the types of service to be rendered, the expected duration, and the expected compensation. 

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

Answer 4 

The correct answer was C) Waiting for a down day in the market to release a ratings downgrade to maximize its impact on a stock’s price. 

Timing the release of a ratings downgrade for maximum price impact is an attempt to distort market pricing and violates Standard II(B) – Market Manipulation. A limit buy order (an order to buy a stock placed below its current price) does not suggest market manipulation. Transactions carried out for tax purposes are not prohibited by Standard II(B). The Standard prohibits members from disseminating false or misleading information, but not from disseminating factual information as long as the intent is not to distort market pricing or mislead market participants. 

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

Answer 5   

The correct answer was C)

Standard III(C), Suitability, requires members to update a client’s financial situation and investment objectives regularly. Wilmer’s account has existed for more than three years, and an update is long overdue. Generally offering to do an update is not sufficient to meet this expectation. 

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

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[此贴子已经被作者于2008-11-14 15:51:15编辑过]

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