ethics Q

Waters is an investment analyst who has accumulated and analyzed several pieces of nonpublic information through her contacts with drug firms. Although none of the information is “material,” Waters correctly concludes that the earnings of one of the drug firms will be unexpectedly high in the coming year. Waters: a.May use the information, but only after approval from a compliance officer or supervisory analyst. b.Should urge the drug firm to make public dissemination of the information immediately. c.Cannot legally invest or make investment recommendations based on this information. d.Can use the information to make investment recommendations and decisions.




Which of the following is LEAST LIKELY to be an example of misrepresentation: a.Omitting relevant facts from a research report. b.Plagiarizing the work of another analyst in writing a research report. c.Claiming to have earned an academic degree or professional designation that has not yet been awarded. d.Guaranteeing a specific rate of return on the equity securities of a public company.

When changing employers or starting another company, which of the following statements regarding the responsibilities of CFA Institute members is/are CORRECT: I. Departing employees are free to make arrangements or preparations to go into competitive business before terminating their relationship with their employer. II. Departing employees have a duty to act in their employer’s best interests until their resignations become effective. III. Departing employees may solicit their employer’s clients for the new venture prior to cessation of employment. a.II and III. b.II only. c.I only. d.I and II

Q2 is A?


Q3 is A also?

Q4)Youn is a successful money manager who is confident of her investment management ability and claims in her marketing brochures that her clients “will obtain a significant return on principle” by following her advice. Youn’s statement: a.Is not a misrepresentation if all her past clients made money on their investments with her. b.States an opinion and therefore cannot be a misrepresentation. c.Improperly implies a guaranteed investment return. d.Misrepresents her ability as an investment manager.

Q5)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.I only. b.I and II. c.II only. d.I, II and III.

4-C 5-C (As he is not a Supervisor)

What r the answers?

Q6)Which of the following actions is LEAST LIKELY to be a violation of the Code and Standards: a.Misrepresenting information when applying for Professional Development credit. b.Posting derogatory comments regarding the CFA Program on a website for CFA candidates. c.Cheating on the CFA Examination. d.Misrepresenting information on the CFA Institute annual Professional Conduct Statement. Q7)Reese is portfolio manager for several clients. She uses the work of the highly skilled research analysts in her firm to support her investment decisions. Reese: a.Violated the Code and Standards because she was unfamiliar with the processes and procedures used by the analysts in coming to their conclusions. b.Violated the Code and Standards because she did not independently verify the research herself. c.Violated the Code and Standards because she did not exercise diligence in making her investment decisions. d.Complied with the Code and Standards. Q8)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 but not accept reimbursement for travel and accommodations. v.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 excursion because Gonzalez considers these modest “perks” acceptable in the normal course of business. 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. Q9)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 III. b.I and II. c.II and III. d.I, II, and III. Q10)Which of the following is the CORRECT manner for an individual to indicate that they hold the CFA designation? a.“I am a CFA charterholder.” b.“I have been awarded a CFA degree by the CFA Institute.” c.“I am a CFA.” d.“I am a Chartered Financial Analyst.”

i don’t have the answers for these …

where have you got them?

cfa website self test search for CFA Institute Code and Standards self test …49 questions just posted the ones which i got wrong …silly mistakes …no answer key is provided

you cant do this to us. i cant live with open ended. lol…

6 B 7 D 8 D ( could be A) 9 D 10 A

6 b 7 d 8 b 9 d 10 a