here’s my opinion: 1)c 2)c 3)d 4)d 5)a 7(since there’s no 6)) c 8)b 9)b 10)a 11)b 12)d 13)c 14)b
I just took the Self test and scored 78% [11 wrong] Can anybody post me the answers to the following questions?? 3- 12- 14- 17- 19- 32- 39- 43- 44- 45- 48-
dinesh - you need to post the questions since the order is different for every test…
barthezz, here are the questions!! [sorry for the clutter… can’t help… anything for a life] 3) Which of the following is LEAST LIKELY to be an example of misrepresentation: Plagiarizing the work of another analyst in writing a research report. Claiming to have earned an academic degree or professional designation that has not yet been awarded. Guaranteeing a specific rate of return on the equity securities of a public company. Omitting relevant facts from a research report. Question 12 of 49 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: 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. May accept the reimbursement for the travel and accommodations because the firm paid for all the analysts and did not show favoritism to Gonzalez. May attend the dinner and participate in the golf tournament and sight-seeing but not accept reimbursement for travel and accommodations. 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. Question 14 of 49 Which one of the following scenarios is MOST LIKELY to be a violation of the Code and Standards: Submitting false expense reimbursement forms. Personal bankruptcy. A conviction for drunk driving. A conviction for possession of drugs. Question 17 of 49 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. I and II. I only. I, II and III. II only. Question 19 of 49 Zamorski, an investment manager, has a number of clients who have indicated that they do not wish to take on any additional risk in their portfolios. Zamorski attends a conference on a new type of derivative that has the potential to significantly increase portfolio performance but also increases the amount of risk to the portfolio. She invests in these new securities for all of her clients with great success. Zamorksi: Has violated the Code and Standards by not following the investment parameters set forth by her clients. Has not violated the Code and Standards because the investment strategy she employed made money for her clients. Has violated the Code and Standards by investing in securities that increase the amount of risk in her clients’ portfolios. Has not violated the Code and Standards because the amount of additional risk incurred for her clients is well within the parameters that the clients can tolerate in her opinion. Question 32 of 49 Which of the following statements is a recommendation of the Standards of Practice Handbook with regard to personal investing? Restrictions on participation in an IPO of equity or equity-related securities. All of the above. Disclosure of all holdings in which the employee has a beneficial interest. Pre-clearance of all trades. Question 39 of 49 Gaines, a financial analyst for Skinner Investment Counseling, is told by the investor relations representative for Firebird Avionics, a major aircraft parts manufacturer, that the firm is in the final stages of building a new fuel efficient jet engine. This information is divulged by Firebird at the most recent quarterly conference call for analysts. Gaines uses this information along with other information he obtained from the company and distributed to the public in a research report that includes a “buy” recommendation for Firebird stock. Which of the following statements is CORRECT: Gaines violated the Code and Standards because he used material nonpublic information. Gaines violated the Code and Standards because he failed to separate opinion from fact. Gaines violated the Code and Standards because he has a material misrepresentation in his report. Gaines’ actions did not violate the Code and Standards. Question 43 of 49 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. II and III. I and II. I, II, and III. I and III. Question 44 of 49 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: Violated the Code and Standards because she did not independently verify the research herself. Violated the Code and Standards because she did not exercise diligence in making her investment decisions. Complied with the Code and Standards. Violated the Code and Standards because she was unfamiliar with the processes and procedures used by the analysts in coming to their conclusions. Question 45 of 49 Which of the following statements clearly CONFLICTS with the recommended procedures for compliance presented in the Standards of Practice Handbook? Investment recommendations may be changed by an analyst without prior approval of a supervisory analyst. For confidentiality reasons, personal transactions should not be compared to those of clients or the employer unless requested by regulatory organizations. Personal transactions include transactions in securities owned by the employee and members of his or her immediate family and transactions involving securities in which the employee has a beneficial interest. Prior approval must be obtained for the personal investment trans¬actions of all employees. Question 48 of 49 Lautenschlager has completed her due diligence on a petrochemical company and is preparing to issue a somewhat negative report on the company that will include a “sell” recommendation. She gives a final draft of the report to company management to review for factual accuracy. The CEO of the company is highly upset by the report and threatens to cut-off her access to company officials and bar Lautenschlager from conference calls and other avenues of communication with the company if the report is published. Lautenschlager’s BEST course of action is to: Allow company management to make revisions to de-emphasize the negative factors but maintain the “sell” recommendation in the report. Publish the report as written, regardless of the objections by company management. Revise her analysis of the company in light of management’s objections to the report. Publish the report with the analysis intact, but remove the “sell” recommendation.
I just got 46/49 Here are the 3 I got wrong…any help appreciated. #1 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. B. 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. C.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. D. May accept the reimbursement for the travel and accommodations because the firm paid for all the analysts and did not show favoritism to Gonzalez. #2 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. #3 Gaines, a financial analyst for Skinner Investment Counseling, is told by the investor relations representative for Firebird Avionics, a major aircraft parts manufacturer, that the firm is in the final stages of building a new fuel efficient jet engine. This information is divulged by Firebird at the most recent quarterly conference call for analysts. Gaines uses this information along with other information he obtained from the company and distributed to the public in a research report that includes a “buy” recommendation for Firebird stock. Which of the following statements is CORRECT: A. Gaines violated the Code and Standards because he has a material misrepresentation in his report. B.Gaines violated the Code and Standards because he failed to separate opinion from fact. C.Gaines violated the Code and Standards because he used material nonpublic information. D.Gaines’ actions did not violate the Code and Standards. IF I had to guess AGAIN I would guess C B D
I think a analyst call does not represent public disemination. I think maybe it is because the engine thing is nonmaterial, so he could use it with the mosaic theory? I THINK.
^Long, CBD is correct. So apparently its OK to no include all relevant facts in a research report…i’ll keep that in mind.
Which of the following is LEAST LIKELY to be an example of misrepresentation: a) Guaranteeing a specific rate of return on the equity securities of a public company. b) Claiming to have earned an academic degree or professional designation that has not yet been awarded. c) Omitting relevant facts from a research report. d) Plagiarizing the work of another analyst in writing a research report. Answer to this is C.
hi longoncaf, I got 4 wrong. they are 3,5,8,11 for 1 and 2, the answers should be d and a do not know about 3. what are ur answers for 5, 8,11?
Chang is an investment advisor who operates as a sole proprietor and has five clients. If Chang obtains employment with a brokerage firm, he: Must get consent from his new employer to keep his clients but does not have to advise his clients of his employment with the brokerage firm. Must advise his clients of his employment with the brokerage firm but does not have to get consent from his new employer to keep his clients. Does not have to advise his clients of his new employment with the brokerage firm or get consent from his new employer to keep his clients. Must get written consent from his new employer to keep his clients and must advise his old clients in writing of his employment with the brokerage firm. is this D??
hey thanks for whoever sent this link, gave the test got 78%. Here are some doubts, saw multiple threads on this topic, didnt know where to post, so posting here, hope someone can explain the answers. #1 Sheramy, a portfolio manager for Woodbridge Investment handles the account of Zamborino, a client of the firm. Zamborino offers to pay Sheramy a $100,000 bonus over and above her compensation from Woodbridge Investments if Sheramy achieves an 18 percent annual return for Zamborino’s account. Sheramy: 1. Cannot accept this offer because it will interfere with her independence and ability to be objective regarding investment decisions and recommendations. 2. Cannot accept this offer because it is outside of her primary employment relationship with Woodbridge Investments. 3. Can accept this offer as long as she discloses the arrangement to her employer. 4. Can accept this offer and disclose the bonus to her employer only if she actually achieves the performance target and receives the gift. #2 Which of the following statements is a recommendation of the Standards of Practice Handbook with regard to personal investing? 1. Disclosure of all holdings in which the employee has a beneficial interest. 2. All of the above. 3. Restrictions on participation in an IPO of equity or equity-related securities. 4. Pre-clearance of all trades #3 Choi is a part of a research team that is collectively responsible for producing investment analysis for his firm’s portfolio managers. The research reports of the group contain all the names of the analysts on the research team. Generally, Choi agrees with the conclusions and recommendations contained in the reports published by the group, but occasionally he holds a minority view. In the report on a particular automotive company, Choi believes prospects for the company are dim while the remainder of the research group are optimistic about the company’s future. The final report recommends that investors buy stock in the company. Choi should: 1. Cooperate with publishing the report but document his difference of opinion with the research team. 2. Inform his supervisors that, unless he dissociates from the report, he will be in violation of the Code and Standards. 3. Insist that his name be removed from the report. 4. Write his own report and publish it separately. ( I guess this question is repeated but i marked 2 and donno why its wrong) #4 Which of the following is LEAST LIKELY to be considered a “material” piece of information regarding a company: 1. Loss of a customer representing a significant portion of a company’s gross sales. 2. A government report of economic trends affecting a company. 3. A former CFO of the company predicting long-term decline in the company’s stock. 4. Changes in company management ( I find all material, ???) Thanks a lot guys for ur help. Best of luck to all!!! Regards swetha
dinesh.sundrani Wrote: ------------------------------------------------------- > barthezz, here are the questions!! > > > 3) > Which of the following is LEAST LIKELY to be an > example of misrepresentation: > Omitting relevant facts from a research report. > > Question 12 of 49 > > 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: 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. ------ xxxxx > > Question 14 of 49 > > Which one of the following scenarios is MOST > LIKELY to be a violation of the Code and > Standards: Submitting false expense reimbursement > forms. > > Question 17 of 49 > > 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. > I, II and III. > > > Question 19 of 49 > > Zamorski, an investment manager, has a number of > clients who have indicated that they do not wish > to take on any additional risk in their > portfolios. Zamorski attends a conference on a > new type of derivative that has the potential to > significantly increase portfolio performance but > also increases the amount of risk to the > portfolio. She invests in these new securities > for all of her clients with great success. > Zamorksi: Has violated the Code and Standards by > not following the investment parameters set forth > by her clients. > > Question 32 of 49 > > Which of the following statements is a > recommendation of the Standards of Practice > Handbook with regard to personal investing? > All of the above. > > > > Question 39 of 49 > > Gaines, a financial analyst for Skinner Investment > Counseling, is told by the investor relations > representative for Firebird Avionics, a major > aircraft parts manufacturer, that the firm is in > the final stages of building a new fuel efficient > jet engine. This information is divulged by > Firebird at the most recent quarterly conference > call for analysts. Gaines uses this information > along with other information he obtained from the > company and distributed to the public in a > research report that includes a “buy” > recommendation for Firebird stock. Which of the > following statements is CORRECT: > Gaines’ actions did not violate the Code and > Standards. > > > > > > Question 43 of 49 > > 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. > I and II. > > > > > > Question 44 of 49 > > 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: > Complied with the Code and Standards. > > Question 45 of 49 > > Which of the following statements clearly > CONFLICTS with the recommended procedures for > compliance presented in the Standards of Practice > Handbook? > Personal transactions include transactions in > securities owned by the employee and members of > his or her immediate family and transactions > involving securities in which the employee has a > beneficial interest. > > > Question 48 of 49 > Lautenschlager has completed her due diligence on > a petrochemical company and is preparing to issue > a somewhat negative report on the company that > will include a “sell” recommendation. She gives > a final draft of the report to company management > to review for factual accuracy. The CEO of the > company is highly upset by the report and > threatens to cut-off her access to company > officials and bar Lautenschlager from conference > calls and other avenues of communication with the > company if the report is published. > Lautenschlager’s BEST course of action is to: > Publish the report as written, regardless of the > objections by company management.
for 3 i am almost sure the answer is C. I have seen this questio on 2003 sample cfa exam, the answer was C. any opinion?
singlesong80 you cant go by numbers…the questions and the answers are all different for each test. The answers you provided are incorrect too. I put D for the first question on my list and it is wrong.
LongOnCFA Wrote: ------------------------------------------------------- > I just got 46/49 > > Here are the 3 I got wrong…any help appreciated. > > #1 > 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: > > > C.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. > > > #2 > > 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. > B. I and II. > > #3 > > Gaines, a financial analyst for Skinner Investment > Counseling, is told by the investor relations > representative for Firebird Avionics, a major > aircraft parts manufacturer, that the firm is in > the final stages of building a new fuel efficient > jet engine. This information is divulged by > Firebird at the most recent quarterly conference > call for analysts. Gaines uses this information > along with other information he obtained from the > company and distributed to the public in a > research report that includes a “buy” > recommendation for Firebird stock. Which of the > following statements is CORRECT: > > D.Gaines’ actions did not violate the Code and > Standards. > > > > IF I had to guess AGAIN I would guess C B D
skashyap Wrote: ------------------------------------------------------- > hey thanks for whoever sent this link, gave the > test got 78%. Here are some doubts, saw multiple > threads on this topic, didnt know where to post, > so posting here, hope someone can explain the > answers. > > #1 > > > > Sheramy, a portfolio manager for Woodbridge > Investment handles the account of Zamborino, a > client of the firm. Zamborino offers to pay > Sheramy a $100,000 bonus over and above her > compensation from Woodbridge Investments if > Sheramy achieves an 18 percent annual return for > Zamborino’s account. Sheramy: > 3. Can accept this offer as long as she discloses > the arrangement to her employer. > #2 > > Which of the following statements is a > recommendation of the Standards of Practice > Handbook with regard to personal investing? > 2. All of the above. > > #3 > Choi is a part of a research team that is > collectively responsible for producing investment > analysis for his firm’s portfolio managers. The > research reports of the group contain all the > names of the analysts on the research team. > Generally, Choi agrees with the conclusions and > recommendations contained in the reports published > by the group, but occasionally he holds a minority > view. In the report on a particular automotive > company, Choi believes prospects for the company > are dim while the remainder of the research group > are optimistic about the company’s future. The > final report recommends that investors buy stock > in the company. Choi should: > 1. Cooperate with publishing the report but > document his difference of opinion with the > research team. – here because it seems that the report is as a matter of fact correct > #4 > Which of the following is LEAST LIKELY to be > considered a “material” piece of information > regarding a company: > 3. A former CFO of the company predicting > long-term decline in the company’s stock. – here the CFO is an insider - he knows more than the public
jalmy8 Wrote: ------------------------------------------------------- > Chang is an investment advisor who operates as a > sole proprietor and has five clients. If Chang > obtains employment with a brokerage firm, he: > > > Must get written consent from his new employer to > keep his clients and must advise his old clients > in writing of his employment with the brokerage > firm. >
hey barthez thanks a million for the answers
my fault. So now I figured out all the correct answers, but I am not convinced! 1. Which of the following statements clearly CONFLICTS with the recommended procedures for compliance presented in the Standards of Practice Handbook? Personal transactions include transactions in securities owned by the employee and members of his or her immediate family and transactions involving securities in which the employee has a beneficial interest. Investment recommendations may be changed by an analyst without prior approval of a supervisory analyst. Prior approval must be obtained for the personal investment trans�actions of all employees. For confidentiality reasons, personal transactions should not be compared to those of clients or the employer unless requested by regulatory organizations. WHY IS a NOT c??? Gaines, a financial analyst for Skinner Investment Counseling, is told by the investor relations representative for Firebird Avionics, a major aircraft parts manufacturer, that the firm is in the final stages of building a new fuel efficient jet engine. This information is divulged by Firebird at the most recent quarterly conference call for analysts. Gaines uses this information along with other information he obtained from the company and distributed to the public in a research report that includes a “buy” recommendation for Firebird stock. Which of the following statements is CORRECT: Gaines violated the Code and Standards because he used material nonpublic information. Gaines violated the Code and Standards because he failed to separate opinion from fact. Gaines’ actions did not violate the Code and Standards. Gaines violated the Code and Standards because he has a material misrepresentation in his report. WHY IS NOT a BUT c? Zamorski, an investment manager, has a number of clients who have indicated that they do not wish to take on any additional risk in their portfolios. Zamorski attends a conference on a new type of derivative that has the potential to significantly increase portfolio performance but also increases the amount of risk to the portfolio. She invests in these new securities for all of her clients with great success. Zamorksi: Has not violated the Code and Standards because the investment strategy she employed made money for her clients. Has violated the Code and Standards by investing in securities that increase the amount of risk in her clients� portfolios. Has not violated the Code and Standards because the amount of additional risk incurred for her clients is well within the parameters that the clients can tolerate in her opinion. Has violated the Code and Standards by not following the investment parameters set forth by her clients. WHY B IS NOT CORRECT TOO?
BARTHEZZ, > Which of the following is LEAST LIKELY to be > considered a “material” piece of information > regarding a company: > 3. A former CFO of the company predicting > long-term decline in the company’s stock. – here the CFO is an insider - he knows more than the public the fact that CFO is an insider should not make his opinion less material???