Little Guy, CFA, was just released from prison after serving 10 years for murder. The first item on his agenda is to find a new job. Having studied the markets very carefully during his 10 year sentence, he feels confident in his ability to forecast undervalued sectors and applies for an analyst role at Silver Cracks & Co., a premier investment banking firm. During the application and interview process, he discloses his prison sentence but does not provide any details surrounding the matter. The managing director hires him on the spot. That night, a potential hedge fund client that focuses on a global macro approach takes Little Guy to a dinner at a local restaurant, followed by a Yankees game, where the hedge fund has season tickets behind home plate. A year later, Little Guy is unhappy with his performance bonus and decides to start his own practice. That night he celebrates the announcement of his new practice at a local pub and gets into an altercation with a fellow patron. No charges were pressed on either party. Little Guy is in violation of the following: a) Misconduct b) Independence and Objectivity c) Disclosure of Conflicts and Interests
lol nice question A) Charges weren’t pressed, so they probably had a beer and resolved their issues. B) Dinner + Yankees game is not in violation of independence and objectivity. Client relationship building C) He didn’t give full disclosure on what he was in prison for. If it was for insider trading, then no way he should be hired. Answer is : C
this guy cannot be CFA charterholder
A where is answer for your first quiz
soccertom = little guy I’ll say C… disclosure fully.
i say B yankees game behind home plate is too much
I’m with the B’s. Although it doesn’t give details of said altercation. What if he punched a girl like that dude who punched Snooki in Jersey Shore.
I don’t know or care to know what’s yankees or what on earth a plate is but choices A and C do not seem to have been violated
haha so if you were in the outfield it wouldn’t be a problem? What about home plate at a blue jays game? These aren’t actual questions right? There made up?
I say C because, the seats behind home plate should be considered as additional compensation and should be disclosed to the employer. There is no indication that the guy informed his employer about the additional compensation.
I go with B. His independence and objectivity is in doubt after enjoying the perks of the game with the prospective client.
Answer is B