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1、2013 Level Mock Exam_ Morning Session单选题1.Questions 1 throug（江南博哥）h 18 relate to Ethical and Professional Standards. 1.Bailey Watson, CFA manages 25 emerging market pension funds.He recently had the opportunity to buy 100,000 shares in a publicly listed company whose prospects are considered “above
2、indusdivy norm” by most analysts.The companys shares rarely divade because most managers take a “buy and hold” sdivategy because of the companys small free float.Before placing the order with his dealer, Watson allocated the shares to be purchased according to the weighted value of each of his clien
3、ts portfolios.When it came time to execute the divades, the dealer was only able to purchase 50,000 shares.To prevent violating Standard III (B) Fair Dealing, it would be most appropriate for Watson to reallocate the 50,000 shares purchased by:A.reducing each pension funds allocation proportionately
4、.B.disdivibuting them equally amongst all the pension fund portfoliosC.allocating randomly but giving funds left out priority on the next similar type divade. 参考答案：A参考解析：“Guidance for Standards IVII,” CFA Institute2013 Modular Level I, Vol.1, Reading 2, Standard III (B) Fair DealingStudy Session 12c
5、Recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.A is correct because Standard III (B) Fair Dealing requires members and candidates to deal fairly and objectively with all clients.Certain clients cannot be favored over othe
6、r clients when their investment objectives and circumstances are similar.Therefore, the most appropriate way to handle the reallocation of an illiquid share is to reduce each clients proportion on a pro rata, or weighted basis.单选题2.Dilshan Kumar, CFA, is a world-renowned mining analyst based in Lond
7、on.Recently, he received an invitation from Cerberus Mining, a London Stock Exchange listed company with headquarters in Johannesburg, South Africa.Cerberus asked Kumar to join a group of prominent analysts from around the world on a tour of its mines in South Africa, some of which are in remote loc
8、ations, not easily accessible.The invitation also includes an arranged wildlife safari to Krueger National Park for the analysts.Kumar accepts the invitation, planning to visit other mining companies he covers in Namibia and Botswana after the safari.To prevent violating any CFA Institute Standards
9、of Professional Conduct, it is most appropriate for Kumar to only accept which type of paid divavel arrangements from Cerberus?A.Ground divansportation to Krueger National ParkB.Economy class round divip ticket from London to JohannesburgC.Flights on a private airplane to the remote mining sites in
10、South Africa 参考答案：C参考解析：“Guidance for Standards IVII,” CFA Institute2013 Modular Level I, Vol.1, Reading 2, Standard I (B) Independence and ObjectivityStudy Session 12cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.C is c
11、orrect because Standard I (B) Independence and Objectivity requires members and candidates to use reasonable care and judgment to maintain their independence and objectivity in their professional activities.Best practice dictates that Kumar only accept transportation to the remote mining sites in th
12、at it is unlikely he would be able to source commercial flights to the locations and ground transport may not be viable.Because Kumar would normally visit mining sites around the world as part of his job and because he is combining this trip with trip to other mine sites in different countries, it w
13、ould be inappropriate for Cerberus to pay for the analysts travel expenses from London.Although Kumar could go on safari with the group of analysts, he should pay his own way so as to restrict any influence such a gift could possibly have when making his investment recommendations on Cerberus.单选题3.A
14、bdul Naib, CFA, was recently asked by his employer to submit an updated document providing the history of his employment and qualifications.The existing document on file was submitted when he was hired five years ago.His employer notices the updated version shows Naib obtained his Master of Business
15、 Adminisdivation (MBA) degree two years ago, whereas the earlier version indicated he had already obtained his MBA.Because the position Naib was hired for had a minimum qualification of an MBA, Naib is asked to explain the discrepancy.He justifies his actions by stating: “I knew you wouldnt hire me
16、if I didnt have an MBA degree, but I already had my CFA designation.Knowing you required an MBA, I went back to school on a part-time basis after I was hired to obtain it.I graduated at the top of my class, but this shouldnt come as any surprise, as you have seen evidence I passed all of my CFA exam
17、s on the first attempt.” Did Naib most likely violate the CFA Institute Standards of Professional Conduct?A.NoB.Yes, with regard to MisconductC.Yes, with regard to Reference to the CFA Designation 参考答案：B参考解析：“Guidance for Standards IVII,” CFA Institute2013 Modular Level I, Vol.1, Reading 2, Standard
18、 I (D) Misconduct, Standard VII (B) Reference toCFA Institute, the CFA Designation and the CFA Program, pp.46, 138140Study Session 12bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.B is correct because Naib knowingly misrepresente
19、d his qualifications by stating he had obtained an MBA degree at the time of his hire when in fact he had not.This reflects adversely on his professional integrity, violating Standard I (D) Misconduct.Stating he passed his CFA exams in three consecutive years is not a violation of Standard VII (B) R
20、eference to CFA Institute, the CFA Designation, and the CFA Program if it is factual.There is no evidence given to indicate he did not pass as claimed.单选题4.Jack Steyn, CFA, recently became the head of the divading desk at a large investment management firm that specializes in domestic equities.While
21、 reviewing the firms divading operations, he notices clients give discretion to the manager to select brokers on the basis of their overall services to the management firm.Despite the client directive, Steyn would most likely violate Standard III (A) Loyalty, Prudence, and Care if he pays soft commi
22、ssions for which of the following services from the brokers?A.Equity research reportsB.Investment conference attendanceC.Database services for offshore investments 参考答案：C参考解析：“Guidance for Standards IVII,”CFA Institute2013 Modular Level I, Vol.1, Reading 2, Standard III (A) Soft Commission Policies,
23、 pp.6364Study Session 12bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.C is correct because Standard III (A) Loyalty, Prudence and Care stipulates that the client owns the brokerage.Therefore members and candidates are required t
24、o only use client brokerage to the benefit of the clients (soft commission policy).Because the firm specializes in domestic equity, an offshore investment database service would not benefit clients.单选题5.Elbie Botha, CFA, an equity research analyst at an investment bank, disagrees with her research t
25、eams buy recommendation for a particular companys rights issue.She acknowledges the recommendation is based on a well-developed process and extensive research but feels the valuation is overpriced based on her assumptions.Despite her condivarian view, her name is included on the research report to b
26、e disdivibuted to all of the investment banks clients.To avoid violating any CFA Institute standards, it would be least appropriate for Botha to undertake which of the following?A.Leave her name on the reportB.Insist her name is removed from the reportC.Issue a new report based on her conclusions 参考
27、答案：C参考解析：“Guidance for Standards IVII”, CFA Institute2013 Modular Level I, Vol.1, Reading 2, Standard IV (A) Loyalty, Standard V (A) Diligence andReasonable BasisStudy Session 12bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.C is
28、 correct because Standard IV (A) calls for employees to be loyal to their employer by not causing harm.If Botha released a contradictory research recommendation report to clients, it could possibly cause confusion amongst clients and embarrassment to the firm.单选题6.Colleen ONeil, CFA, manages a priva
29、te investment fund with a balanced global investment mandate.Her clients insist that her personal investment portfolio replicate the investments within their portfolio to assure them she is willing to put her money at risk.By undertaking which of the following simultaneous investment actions for her
30、 own portfolio would ONeil most likely be in violation of Standard VI (B) Priority of Transactions?A.Sale of a listed U.S.blue chip value stockB.Participation in a popular frontier market IPOC.Purchase of a UK government bond in the primary market 参考答案：B参考解析：“Guidance for Standards IVII,” CFA Instit
31、ute2013 Modular Level I, Vol.1, Reading 2, Standard VI (B) Priority of TransactionsStudy Session 12bDistinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards.B is correct because Standard VI (B) Priority of Transactions dictates members and
32、candidates give their clients and employer priority when making personal investment transactions.Even when clients allow or insist the manager invest alongside them, the managers transactions must never adversely affect the interests of the clients.A popular or “hot” IPO in a frontier market is like
33、ly to be oversubscribed.In such cases, Standard VI (B) dictates the manager should not participate in this event to better ensure clients will have a higher probability of getting their full subscription allotment, even though clients have allowed or dictated that she participate alongside them.单选题7
34、.Christina Ng, a Level I CFA candidate, defaulted on a bank loan she obtained to pay for her Masters degree tuition when her wedding cost more than expected.A micro finance loan company lent her money to pay off the tuition loan in full, including penalties and interest.The micro finance loan compan
35、y even extended further credit to pay for her parents outstanding medical bills.Unfortunately, her parents health problems escalated to the point where Ng had to take extensive time away from work to deal with the issues.She was subsequently fired and consequently defaulted on the second loan.Becaus
36、e she was no longer employed, Ng decided to file for personal bankruptcy.Do the loan defaults leading up to Ngs bankruptcy most likelyviolate Standard I (D) Misconduct?A.NoB.Yes, with regard to the first loan defaultC.Yes, with regard to the second loan default 参考答案：A参考解析：“Guidance for Standards IVI
37、I,” CFA Institute2013 Modular Level I, Vol.1, Reading 2, Standard I (D) MisconductStudy Session 12aDemonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity.A is correct because although Ngs first loan default, wh
38、ich played a part in the subsequent bankruptcy, is a result of poor financial choices (i.e.paying for higher wedding costs rather than her tuition loan), neither of the loan defaults or the bankruptcy involves fraudulent or deceitful business conduct but are based on unfortunate personal circumstanc
39、es.Therefore, she would most likely not be in violation of Standard I (D) Misconduct.单选题8.Charles Mbuwanga, a Level III CFA Candidate, is the business development manager for Sokoza Investment Group, an investment management firm with high-net-worth retail clients throughout Africa.Sokoza indivoduce
40、d listed Kenyan Real Estate Investment Trusts (REITs) to its line of investment products based on new regulations indivoduced in Kenya so as to diversify its product offering to clients.The product indivoduction comes after months of researching Kenyan property correlations with other property marke
41、ts and asset classes in Africa.Sokoza assigns Mbuwanga as part of the sales team in indivoducing this product to its clients across Africa.Mbuwanga subsequently determines most of Sokozas clients portfolios would benefit from having a small Kenyan property exposure to help diversify their investment
42、 portfolios.By promoting the Kenyan REITs for Sokozas client portfolios as planned, Mbuwanga would least likely violate which of the following standards?A.SuitabilityB.Knowledge of the LawC.Independence and Objectivity 参考答案：C参考解析：“Guidance for Standards IVII,” CFA Institute2013 Modular Level I, Vol.
43、1, Reading 2, Standard I (A) Knowledge of the Law, Standard I (B)Independence and Objectivity, Standard III (C) SuitabilityStudy Session 12cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.C is correct because there is no i
44、ndication Mbuwangas recommendation is based on any compensation package based on sales targets as being part of the sales team.If he had a sales target as part of his responsibility to promote the new product, it could be conceived that his independence and objectively was in question.Mbuwanga does,
45、 however, seem to be in violation of Standard III (C) Suitability in that, although research with regard to correlation was undertaken, an analysis based on each individual clients return and risk objectives was not done.He may also be in violation of Standard I (A) Knowledge of the Law in that he w
46、ould need to determine if the Kenyan REIT product is allowable in each of the countries where his clients reside.单选题9.Victoria Christchurch, CFA, is a management consultant currently working with a financial services firm interested in curtailing its high staff turnover, particularly amongst CFA cha
47、rter-holders.In recent months, the company lost 5 of its 10 most senior managers, all of whom have cited systemic unethical business practices as the reason for their leaving.To curtail staff turnover by encouraging ethical behavior, it would be least appropriate for Christchurch to recommend the co
48、mpany do which of the following?A.Implement a whistle-blowing policyB.Encourage staff retention with increased benefitsC.Create, implement and monitor a corporate code of ethics 参考答案：B参考解析：“Guidance for Standards IVII,” CFA Institute2013 Modular Level I, Vol.1, Reading 2, Standard I (A) Knowledge of
49、 the LawStudy Session 12cRecommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct.B is correct because the offering of increased benefits to encourage staff retention would not necessarily stop the unethical behavior causing staff turnover and