Q6. An analyst has several groups of clients who are categorized according to their specific needs. Compared to research reports distributed to all of the clients, reports for a specific group:

A)   may generally exclude more basic facts.

B)   will not be allowed because it violates the Standard III(B), Fair Dealing.

C)   will definitely include more basic facts.

Q7. Midland Investment Banking issues a prospectus for its open-end Midland Gold Fund. In the prospectus, the investment policy is disclosed as, "We will maintain an investment posture of 50% or more in gold stocks and/or bullion, depending upon market conditions." This policy is maintained until the price of gold falls by 20%, leaving the fund 40% invested in gold stocks and bullion. Management decides that since the allocation was affected by market conditions, no action to either change the investment policy or to rebalance the portfolio is required. This decision is:

A)   in violation of the Standard concerning disclosure of investment processes.

B)   in violation of the Standard concerning fiduciary duties to clients.

C)   under the circumstances, not in violation of the Code and Standards.

Q8. An analyst finds a stock with historical returns that are not correlated with interest rate changes. The analyst writes a report for his clients that have large allocations in fixed-income instruments and emphasizes the observed lack of correlation. The clients with allocations of fixed income instruments are the only clients to see the report. According to Standard V(B), Communication with Clients and Prospective Clients, the analyst has:

A)   violated the Standard concerning fair dealings with all clients.

B)   not violated the Standard.

C)   violated the article in the Standard concerning facts and opinions.

Q9. An analyst finds a stock that has had a low beta given its historical return, but its total risk has been commensurate with its return. When writing a research report about the stock for clients with well-diversified portfolios, according to Standard V(B), Communication with Clients and Prospective Clients, the analyst needs to mention:

A)   both the historical beta and total risk and return.

B)   the relationship of the historical beta and return only.

C)   the relationship of the historical total risk to return only.

答案和详解如下：

Q6. An analyst has several groups of clients who are categorized according to their specific needs. Compared to research reports distributed to all of the clients, reports for a specific group:

A)   may generally exclude more basic facts.

B)   will not be allowed because it violates the Standard III(B), Fair Dealing.

C)   will definitely include more basic facts.

Correct answer is A)

According to Standard V(B), an analyst can use reasonable judgment regarding the exclusion of some facts and should include more basic facts for reports to wider audiences. The key issue is that analysts should tailor their reports to the intended audience.

Q7. Midland Investment Banking issues a prospectus for its open-end Midland Gold Fund. In the prospectus, the investment policy is disclosed as, "We will maintain an investment posture of 50% or more in gold stocks and/or bullion, depending upon market conditions." This policy is maintained until the price of gold falls by 20%, leaving the fund 40% invested in gold stocks and bullion. Management decides that since the allocation was affected by market conditions, no action to either change the investment policy or to rebalance the portfolio is required. This decision is:

A)   in violation of the Standard concerning disclosure of investment processes.

B)   in violation of the Standard concerning fiduciary duties to clients.

C)   under the circumstances, not in violation of the Code and Standards.

Correct answer is A)

Standard V(B) Communication with Clients and Prospective Clients requires members to disclose "general principles and investment processes" to clients and to "promptly disclose any changes that might significantly affect those processes." Under the Standard, Midland management is required either to: 

1. rebalance the portfolio in a timely manner so as to maintain compliance with the investment policy or 

2. communicate an intended change in that policy well in advance of the actual change so as to afford investors time to act prior to the change in investment policy taking place. 

Midland is in violation of the Standard.

Q8. An analyst finds a stock with historical returns that are not correlated with interest rate changes. The analyst writes a report for his clients that have large allocations in fixed-income instruments and emphasizes the observed lack of correlation. The clients with allocations of fixed income instruments are the only clients to see the report. According to Standard V(B), Communication with Clients and Prospective Clients, the analyst has:

A)   violated the Standard concerning fair dealings with all clients.

B)   not violated the Standard.

C)   violated the article in the Standard concerning facts and opinions.

Correct answer is B)

Recommending a stock whose return is uncorrelated with interest rate changes is appropriate for the clients described in the problem. Emphasizing the lack of correlation is appropriate as long as the analyst makes no guarantees concerning the relationship in the future. Reporting historical correlation is a presentation of fact, and is not in violation. The analyst is free to show the report only to investors for whom the investment is appropriate.

Q9. An analyst finds a stock that has had a low beta given its historical return, but its total risk has been commensurate with its return. When writing a research report about the stock for clients with well-diversified portfolios, according to Standard V(B), Communication with Clients and Prospective Clients, the analyst needs to mention:

A)   both the historical beta and total risk and return.

B)   the relationship of the historical beta and return only.

C)   the relationship of the historical total risk to return only.

Correct answer is B)

Using reasonable judgment, an analyst may exclude certain factors from research reports. Since the report will be delivered to clients with well-diversified portfolios, total risk is not as important as beta. Given that the total risk has been only commensurate with historical return, furthermore, then the analyst is not negligent by not mentioning it.