Those questions were so bad! Terribly written and silly.
agreed…i’m finding a lot of these questions were very poorly written. sad that cfa couldnt have done more proof reading on their own mocks
They must be the leftover questions after 240 are chosen for the real thing. It wasn’t just ethics, there were bad questions throughout.
You know why they put those questions in there? Thugs and criminals… Dale Peterson wouldn’t stand for this non-sense! Those CFAI tests writers don’t give a rip! http://www.youtube.com/watch?v=HQdTgkY321s
I agree… Even the explanations confuse me as they often write in overly complex language. Ex: “The information overheard would not be considered material only if staff likely to be terminated were not considered to be in influential positions such that any public announcement of their removal would be unlikely to move the share price of the bank, nor would the regional expansion substantially impact the value of the bank.” It’s (eventually) understandable, but it’s a huge sentence that could be made far more simple. The first half of the sentence is awful but the second have wasn’t bad. (PS, I got that one right…)
That question was confusing… I mean senior managers and board members wouldn’t be talking about firing janitors, right? Also here in India, a regional bank (Bank of Rajasthan) was taken over by ICICI Bank and the impact on prices of both stocks was tremendous (greater than 20% on Bank of Raj) . So regional expansion DOES impact the value of the bank… Ethics is too frustrating for me.
Just a quick question. A trader who manages fixed income securities gurantees a return of 5% since he invests in US Government Treasury Bonds yielding the same amount. Is he in violation of 1 C (Misrepresentation)?
I would say yes. Because he cannot personally guarantee the bond.
The long winded question about the analyst bribing the police officer with a free lunch was about the point where I just stopped trying.
exactly, bribing him with lunch? what?
haha… and the “cost” of lunch is higher!!! There was a similar question in Schweser where an analyst who entered an incorrect trade tries to calm down the client by promising to take her to a fancy restaurant and pairing it up with some 1972 rare white wine!! I am definitely gonna laugh if i read such questions…Will relieve some pressure in the middle of the exam
btw, just spoke to a friend. He said that one of his colleagues had greater than 70 in all sections and less than 50 in Ethics but managed to pass L1… Definitely some good news!