FROM CFAI’s 49 question exam: 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) Guaranteeing a specific rate of return on the equity securities of a public company. C) Claiming to have earned an academic degree or professional designation that has not yet been awarded. D) Omitting relevant facts from a research report. I thoguht all four are misrepresentation? Powell is a research analyst with Rossington & Collins a brokerage and investment banking firm. R&C’s mergers and acquisitions department has represented Wilkenson Company in all its investment banking deals. Two of R&C’s senior officers are directors of several Wilkenson subsidiaries. Powell has been asked to write a research report on Wilkenson. What is Powell’s BEST course of action? A)Powell may write a factual report but must refrain from expressing any opinions because of the special relationship between the two companies. B) Powell may write the report if she discloses in the report the officer’s special relationships with the company and the fact that Rossington & Collins has served as Wilkinson’s investment banker. C D Why is A too strong? 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. XXXX Answer I & II Don’t you have to disclose I to your current employer?
D) Omit relevant facts - Does a client need to see every ratio and number used to come up with a recommondation? They may all be relevant but not necessary, a simple summary would probably suffice.
If Powell refrains from expressing any opinions, won’t it interfere with his independence and objectivity?
Reggie Wrote: ------------------------------------------------------- > D) Omit relevant facts - Does a client need to see > every ratio and number used to come up with a > recommondation? They may all be relevant but not > necessary, a simple summary would probably > suffice. Duh. Thank goodness the real exam isn’t at 12:30. I really hate “LEAST” questions. I get thrown off. THANKS
If you’re working at citibank and submit your resume to bank of america is it unethical (once you get the applied job) to give citibank you 2 weeks notice and move on to your next job. Your boss or supervisor doesn’t need to know where you’re going to. As long as you’re not working at BoA while you’re at citibank or anything like that
No problem man, best of luck to you
I just took the test and I also missed the first question you posted; they all seem like plausible answers to me. As for the second question, I think A is too strong because a report in which the analyst makes a recommendation cannot, by nature, be 100% factual. Also, I think this question was formed to emphasize the importance of the disclosure of conflicts. 3) The employee does not have to disclose his future plans as long as they are just plans.
Btw, Where can I take this test ? I mean CFAI’s ethics test that Dan’s talking about ?