zbird2134

I took the exam and since i got these questions right, I am posting confirmed correct answers.
soverby Wrote:
——————————————————-
> These questions are short, but tricky. Good
> luck!
>
>
> If a CFA Institute member believes that the
> activity of his or her co-workers is unethical or
> in violation of the Code and Standards, the member
> should:
>
> I. Confront the person engaging in the
> unethical conduct.
> II. Attempt to stop the behavior by bringing
> it to the attention of their employer.
> III. Dissociate from behavior by resigning,
> if necessary.
>
>
> A. II only.
>
> B. I, II and III.
>
> C. I and II.
>
> D. I only.
CORRECT ANSWER: B
> Which of the following is LEAST LIKELY to be an
> example of misrepresentation:
>
> A. Plagiarizing the work of another analyst in
> writing a research report.
>
> B. Claiming to have earned an academic degree or
> professional designation that has not yet been
> awarded.
>
> C. Omitting relevant facts from a research
> report.
>
> D. Guaranteeing a specific rate of return on the
> equity securities of a public company.
CORRECT ANSWER: C
> Which of the following statements regarding
> research reports is/are CORRECT according to the
> Standards of Practice Handbook?
>
> I. Members should outline known limitations
> of their analysis.
> II. Reports should be supported by background
> and supporting information, and this information
> should be available to interested parties.
> III. Members must include all relevant
> factors in research reports.
>
>
> A. I and II.
>
> B. I, II, and III.
>
> C. I and III.
>
> D. II and III.
CORRECT ANSWER: B
> Gaines, a financial analyst for Skinner Investment
> Counseling, is told by the investor relations
> representative for Firebird Avionics, a major
> aircraft parts manufacturer, that the firm is in
> the final stages of building a new fuel efficient
> jet engine. This information is divulged by
> Firebird at the most recent quarterly conference
> call for analysts. Gaines uses this information
> along with other information he obtained from the
> company and distributed to the public in a
> research report that includes a “buy”
> recommendation for Firebird stock.
>
> Which of the following statements is CORRECT:
>
> A. Gaines violated the Code and Standards because
> he has a material misrepresentation in his
> report.
>
> B. Gaines violated the Code and Standards because
> he used material nonpublic information.
>
> C. Gaines’ actions did not violate the Code and
> Standards.
>
> D. Gaines violated the Code and Standards because
> he failed to separate opinion from fact.
CORRECT ANSWER: C
> As part of his responsibilities as a research
> analyst, Gonzalez, along with several other
> analysts, takes a tour of the corporate
> headquarters and meets with management of a large
> electronics company in Asia. The company pays for
> the travel and accommodations of all the analysts
> participating in the 2-day tour and hosts a
> dinner, a golf tournament, and a sightseeing
> excursion for them as part of the trip. Under
> these circumstances, Gonzalez:
>
> A. May attend the dinner and participate in the
> golf-tournament and sight-seeing excursion because
> Gonzalez considers these modest “perks” acceptable
> in the normal course of business.
>
> B. May accept the reimbursement for the travel
> and accommodations because the firm paid for all
> the analysts and did not show favoritism to
> Gonzalez.
>
> C. May attend the dinner and participate in the
> golf tournament and sight-seeing but not accept
> reimbursement for travel and accommodations.
>
> D. Should not accept reimbursement for his travel
> and accommodation expenses and should not attend
> the dinner or participate in the golf tournament
> as doing so may impinge on Gonzalez’s independence
> and objectivity.
CORRECT ANSWER: D
>
> Which of the following is LEAST LIKELY to be
> considered a “material” piece of information
> regarding a company:
>
> A. Changes in company management.
>
> B. A government report of economic trends
> affecting a company.
>
> C. Loss of a customer representing a significant
> portion of a company’s gross sales.
>
> D. A former CFO of the company predicting
> long-term decline in the company’s stock.
CORRECT ANSWER: D
> Sheramy, a portfolio manager for Woodbridge
> Investment handles the account of Zamborino, a
> client of the firm. Zamborino offers to pay
> Sheramy a $100,000 bonus over and above her
> compensation from Woodbridge Investments if
> Sheramy achieves an 18 percent annual return for
> Zamborino’s account. Sheramy:
>
> A. Can accept this offer as long as she
> discloses the arrangement to her employer.
>
> B. Can accept this offer and disclose the bonus
> to her employer only if she actually achieves the
> performance target and receives the gift.
>
> C. Cannot accept this offer because it is
> outside of her primary employment relationship
> with Woodbridge Investments.
>
> D. Cannot accept this offer because it will
> interfere with her independence and ability to be
> objective regarding investment decisions and
> recommendations.
CORRECT ANSWER: A