CFA_Ethics_12

Jones, Inc., is attempting to qualify for Global Investment Performance Standards (GIPS) compliance. Regarding mandatory disclosures, which of the following disclosures will be insufficient and thus prevent Jones, Inc., from claiming compliance?
A)Jones' definition of the firm is that they are a brokerage/portfolio management firm registered with the Securities and Exchange Commission (SEC).
B)Jones discloses all firm assets under active management each period.
C)Jones makes available a complete list and description of all of the firm’s composites.
D)Jones discloses all non-fee paying portfolios that are included in composites and notes the percentage of composite assets that are non-fee paying portfolios.

answer : B

CFA_Ethics_11

Calvin Doggett, CFA, has been contacted by the CFA Institute Professional Conduct Program (PCP) regarding allegations that he has taken investment actions that were unsuitable for his clients. Doggett is questioned by PCP concerning the identity of his clients he considered suitable for investing in a very risky start-up company that eventually went bankrupt. Doggett will:

A)not violate the Code and Standards only if he reveals the financial condition and investment objectives of his clients on an anonymous basis and does not reveal the names of his clients to PCP.
B)not violate the Code and Standards by refusing to reveal information concerning his client's investments to the PCP.
C)violate the Code and Standards by fully cooperating with a PCP investigation if it means revealing confidential information.
D)not violate the Code and Standards by revealing the names, financial condition and investment objectives of his clients to PCP.

answer : D

CFA_Ethics_10

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

CFA_Ethics_8

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

CFA_Ethics_9

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

CFA_Ethics_7

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

CFA_Ethics_6

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