terrible question - would get thrown out
wow. I am going to take supergeek as a compliment because I am getting owned lately. Every time I sit down it seems like I come across at least one item set that might as well be taken from the CFA Mars curriculum, and then I rip off a solid 4/15. On the second Q, I kinda figured they went out of their way to say high grade bond fund and speculative stock. I imagine in the real world everything requires clearance or disclosure of confirms or something, but here in alt qbank reality, since it was a stock and he manages bonds and since it was a speculative co and the co isn’t likely to have high grade debt, it seemed cool enough. Mostly the answer choices steer you to A since B & C are related to priority, which is out since it is a speculative stock vs. high grade debt, and loyalty, which is out since there is no indication it was at the expense of company time. Agree that Q2 is pretty weak.
slouiscar Wrote: ------------------------------------------------------- > On the second Q, I kinda figured they went out of > their way to say high grade bond fund and > speculative stock. I imagine in the real world > everything requires clearance or disclosure of > confirms or something, but here in alt qbank > reality, since it was a stock and he manages bonds > and since it was a speculative co and the co isn’t > likely to have high grade debt, it seemed cool > enough. Mostly the answer choices steer you to A > since B & C are related to priority, which is out > since it is a speculative stock vs. high grade > debt, and loyalty, which is out since there is no > indication it was at the expense of company time. > Should we assume for priority of transactions that this standard only applies HIS client level though? If the question stated he worked for a large firm that managed equities too, would the answer still be the same?
hmmm, this falls into the area of let’s just work with what we have. B is not right because he “comes across” the stock and it does not state that he was researching it on company time. C is not right because it says he needs to go to his manager to see if it is appropriate for the portfolio he manages when it clearly states he is buying this in his personal portfolio. He may invest in the stock since it would not be purchased in the portfolio he manages. We shouldn’t make assumptions about the restricted list or other details other than what’s stated. I have done well on Ethics for I and II and I think it’s because I try to think like the CFAI folks. Never assume, they give you what you need. Then again, if this didn’t come from the CFAI folks, it’s just poorly worded and confusing!
Remember how much of a b!tch some of those ethics ?'s were for L2 last year? It took everyone on here a month with open books, and we still weren’t able to come to a consensus on a couple of those questions. I wouldn’t expect any less for L3.
mwvt9 Wrote: ------------------------------------------------------- > Should we assume for priority of transactions that > this standard only applies HIS client level > though? If the question stated he worked for a > large firm that managed equities too, would the > answer still be the same? As our Schweser instructor says (to paraphrase), “playing the ‘what if’ game is dangerous.” I think you’d then need more info. If all it said was he was with a large firm that managed equities too, you’d still be in the same place with the choices given.
I am no longer talking about this question (mentioned earlier). I am trying to understand the underlying concept, so as to correctly apply it in the future.
Well, without reading the standard’s explanation in detail, I would opine that even if his firm manages equities, there’s no violation of priority of transactions if he is truly separate from that part of the firm with different responsibilities. I don’t think there’s any issue unless he has knowledge of what the equity guys are doing and then trades on that, but I think you’d need those details. Thoughts?
Not sure. I am the worst at this stuff.
Yeah, it’s a bear. And on the real exam you can usually scratch one choice easily but then you’re left with that toss up on the other two no matter what!
mwvt9 , i agree with you on the first one, on the day he passed the exams does not mean he has sufficient work experiences to get the charter or use the CFA designation, the problem is not clear and is not correct.
There’s no violation w/ the first question because he didn’t use any of the business cards, just printed them. Printing the cards isn’t a violation unless he uses them.