Monday, November 10, 2008


All of the following are violations of Standard I(D), Misconduct, EXCEPT:
A) conviction of a crime involving fraud.
B)conviction of a misdemeanor involving civil disobedience in support of one’s personal beliefs.
C)dishonest activities that reflect negatively on professional competence even if they do not result in criminal convictions.
D)any conduct that undermines confidence that the CFA charter represents a level of achievement based on merit and ethical conduct.
answer: B


According to CFA Institute Standards of Professional Conduct, which of the following is NOT a form of plagiarism?

A)Using charts and graphs without stating their sources.
B)Citing specific quotations supposedly attributable to "leading analysts" and "investment experts" without specific reference.
C)Presenting statistical estimates of forecasts prepared by others with the source identified, but without qualifying statements or caveats that may have been used.
D)Using factual information published by recognized financial and statistical reporting services or similar sources without an acknowledgment.

answer: D


Within the Global Investment Performance Standards (GIPS) are supplemental provisions which must be applied to which of the following asset classes?

A)Private equity and real estate.
B)Emerging markets and private equity.
C)Hedge funds and derivatives.
D)Alternative investments and derivatives.

answer: A


Bob Hatfield, CFA, has his own money management firm with two clients. The accounts of the two clients are equal in value. One of the clients gets married and the assets of the new spouse and the client are combined. With the larger portfolio of the now married client, Hatfield determines that they can assume a higher level of risk and begins a change in the policy concerning that portfolio. Which of the following would violate Standard III(C), Suitability?
A)Assess the time horizon of the newly married client and his spouse.
B)Assess the return objectives of the newly married client and his spouse.
C)Notify the client of the change in policy and why he is enacting it.
D)Implement a similar policy for the other client who did not just get married.
answer: D


Julie Stades retired several years ago and relinquished her membership in CFA Institute. She had the CFA designation up until then. She has decided to go back to work and puts the following statement on her resume: “I earned the CFA designation 10 years ago.” Is this a violation of Standard VII(B)?
A)No, because she uses "CFA" as a noun.
B)Yes, because she uses "CFA" as a noun.
C)Yes, she has used the letters "CFA" in an undignified manner.
D)No, as long as she does not indicate she currently has the designation.
answer: D