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1、Schweser Printable Tests - Level 1 - EXAM 4 Afternoon - 180 minutes - Level 1 - EXAM 4 AfternoonYou can print this page by going to file - print in your internet browser. Ethics - 18 Questions - 27 minutesQuestion: 1 - 10487 Deloris Johnson, CFA, suspected that her intern, who was working without pa
2、y at her brokerage firm, had violated a federal securities regulation. Johnson discussed the matter with her companys legal counsel who said that the interns conduct was illegal. According to the AIMR Code and Standards of Professional Conduct, Johnson can dissociate herself from this illegal activi
3、ty by: A)transferring supervision of the intern to another person.B)reporting the activity to the appropriate authorities.C)reporting the violation to AIMR.D)telling her intern to stop such conduct.Question: 2 - 10622 A bank trust department has three portfolio managers (Diane Cole, Tomas Bermudez,
4、and Anthony Ring) who have been awarded the right to use the CFA designation and one other employee (Diane Takao), who is currently enrolled in the CFA Program. The bank wants to include information about these individuals in a brochure. According to the AIMR Standards of Professional Conduct, which
5、 of the following is a proper use the designation in the brochure? A)Anthony Ring is a Chartered Financial Analyst who has had 10 years of experience as a portfolio manager.B)Tomas Bermudez is a CFA-type portfolio manager, who specializes in growth stocks.C)Diane Takao passed Level II of the CFA exa
6、mination in 2000 and is currently enrolled to take Level III in 2001.D)Diane Cole is one of three CFAs in our trust department.Question: 3 - 10639 Janet Olson, CFA, is an analyst at Quantech Associates. Olson attended a conference at which Brian Wright presented several proprietary computerized spre
7、adsheets that he had developed to value high-tech stocks. While at the conference, Olson copied the spreadsheets without Wrights knowledge. Later, Olson made several minor changes to Wrights initial model. After testing the revised model, Olson was impressed with the results. As inputs for the model
8、, she used factual materials supplied by Moodys Investors Service, a recognized financial and statistical reporting service. Olson wrote a research report describing the revised model and its results and distributed the report to Quantechs clients. According to the AIMR Standards of Professional Con
9、duct, which of the following actions is Olson required to take? Olson is: A)required to seek authorization from Wright to copy the spreadsheets and acknowledge Wright for developing the initial model and Moodys Investors Service as the source of the data.B)required to acknowledge Moodys Investors Se
10、rvice as the source of the data but is not required to seek the authorization from Wright to copy the spreadsheets or to acknowledge Wright for developing the initial model.C)not required to seek authorization from Wright to copy the spreadsheets or to acknowledge either Wright for developing the in
11、itial model or Moodys Investors Service as the source of the data.D)required to seek the authorization from Wright to copy the spreadsheets, acknowledge Wright for developing the initial model but is not required to acknowledge Moodys Investors Service as the source of the data.Question: 4 - 10654 N
12、ick ODonnell, CFA, unsuspectingly joins the research team at Wickett & Co., an investment banking firm controlled by organized crime. None of the managers at Wickett are AIMR members. During his first day on the job he is asked by his boss, What does CFA stand for? In this instance he should: A)quit
13、 immediately and begin looking for a new job.B)report Wickett to the relevant regulatory authorities.C)deliver a copy of the Code and Standards to his employer and inform them that he is obligated to comply with the contents thereof.D)explain what CFA stands for and explain the requirements that hav
14、e been met to become an AIMR member.Question: 5 - 10681 The following scenarios refer to two analysts who are employed at Global Securities, a large brokerage firm. Paula Linstrom, CFA, is instructed by her supervisor to write a research report on Delta Enterprises. Deltas stock is widely held by in
15、stitutional and individual investors. Although Linstrom does not own any of Deltas stocks, she believes that one of her friends may own 10 shares of Delta. The stock currently sells for $25 dollars a share. Linstrom does not believe that informing her employer about her friends possible ownership of
16、 Delta shares is necessary. Hershel Wadel, a member of AIMR, is asked by his supervisor to write a research report on Gamma Company. Wadels wife inherited 500 shares of Gamma Company from her father when he died five years ago. Gamma stock currently sells for $35 a share. Wadel does not believe that
17、 informing his employer about his wifes ownership of Gamma shares is necessary. According to the AIMR Standards of Professional Conduct, which the following statements about Linstrom and Wadels conduct is TRUE?A)Both Linstrom and Wadel violated the Standards.B)Wadel violated the Standards, but Linst
18、rom did not.C)Neither Linstrom nor Wadel violated the standardsD)Linstrom violated the Standards, but Wadel did not.Question: 6 - 10725 According to the AIMR Standards of Professional Conduct, which of the following is NOT a compliance procedure for maintaining independence and objectivity in making
19、 investment recommendations or taking investment action? A)Disclose personal holdings and beneficial ownerships.B)Create a restricted list so that the firm disseminates only factual information about a controversial company.C)Disclose all corporate relationships such as directorships and underwritin
20、g arrangements.D)Maintain files to support investment recommendations.Question: 7 - 10741 Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. He places trades for the fund with Canadian Brokerage. Canadian provides Calaveccio with soft dollars to purchase research.
21、 He uses these soft dollars to get research reports from Canadians research department regarding the issues currently held in the small cap portfolio, and also for firms he is contemplating adding to the portfolio. These actions are: A)not in violation of the Code and Standards.B)in violation of his
22、 fiduciary duties insofar as both the currently held issue research and research concerning issues contemplated for purchase.C)in violation of his fiduciary duties insofar as the contemplated issues are concerned but not so regarding research concerning currently held issues.D)in violation of his fi
23、duciary duties insofar as the currently held issues are concerned but not so regarding research concerning issues contemplated for purchase.Question: 8 - 10745 Marc Randall, CFA, is an investment analyst. During a meeting with a potential client, Randalls boss states that, You can be sure our invest
24、ments will always outperform Treasury Bonds because of our fine research staff members, like Marc. Randall knows that this statement is: A)a violation of the Standard concerning prohibition against misrepresentation.B)a violation of fiduciary duties owed to clients under the Standards.C)a violation
25、of the Standard concerning the use of nonpublic information, since shares can be manipulated to obtain the desired return.D)not in violation of the Code and Standards.Question: 9 - 29527 Joanna Burgess, CFA, prepared a research report on Lighthouse, Inc. for public distribution. The entire focus of
26、the report was on the economy in general and the prediction that the computer chip industry would be carried along by the strong economy. The report concluded by stating that Lighthouse, a computer chip manufacturer, was significantly posed for future growth and predicted that Lighthouses stock pric
27、e would double in the next year.Burgess report: A)violates the Code and Standards because it predicts that Lighthouses stock price will double in the next year. B)violates the Code and Standards because it was distributed beyond Burgess own clients.C)violates the Code and Standards because it does n
28、ot indicate the basic characteristics of Lighthouse, Inc.D)does not violate the Code and Standards.Question: 10 - 29528 Heidi Krueger, CFA, has discretionary authority over the accounts of Johnson, for whom she manages a portfolio of energy stocks, and Osaki, for whom she manages a diversified portf
29、olio of domestic and international stocks. Krueger always seeks the best price and execution and has disclosed to all of her clients the process she follows to make use of soft dollars and apply them for the benefit of her clients.In the year 2000, Krueger applied soft dollars generated from the Joh
30、nson and Osaki accounts to purchase a report on the economic impact of world events, to purchase an analysis of the domestic steel industry, and to purchase a new conference table for her office.Krueger was in compliance with the Code and Standards in the year 2000: A)only if she had not used soft d
31、ollars to pay for the conference table and had not used soft dollars from the trading of Johnsons account to pay for the report on the domestic steel industry.B)only if she had not used soft dollars to pay for the conference table.C)because she disclosed her use of soft dollars and applied them for
32、the direct and indirect benefit of her clients.D)only if she provided a summary of her soft dollar spending to her clients with their annual account statements.Question: 11 - 29529 Millie Walker, CFA, established an aggressive growth portfolio for her client, Jesse Wilmer, in December 2000. Wilmer w
33、as placed on Walkers employers client mailing list, and received monthly account statements and the firms newsletter, which regularly informed clients that they should contact their account representative with any change in their personal circumstances or investment objectives. As of January, 2002,
34、Walker had not spoken to Wilmer nor received any correspondence from Wilmer since the account was established.Walker has: A)not violated the Code and Standards because there has been regular correspondence from Walkers firm to Wilmer. B)not violated the Code and Standards because Wilmer has been rem
35、inded regularly about the opportunity to inform Walker about any changes. C)not violated the Code and Standards because there is no requirement for ongoing communication between client and portfolio manager. D)violated the Code and Standards because the manager has not performed an update of Wilmers
36、 financial situation and investment objectives.Question: 12 - 29530 On October 25, 2001 Bjorn Sandvik, CFA, completed a research report with a buy recommendation for Acorn Properties. In the early afternoon of October 25, Sandvik e-mailed this recommendation to his clients who had responded to his r
37、equest that they provide Sandvik with their e-mail addresses. Later that afternoon, the printed recommendation was forwarded to the postal service for normal delivery to all customers, who received the mailing from 1 to 3 days later.Sandvik has: A)not violated the Code and Standards because members
38、are not required to disseminate research recommendations to their clients according to any definite standard. B)not violated the Code and Standards because he acted fairly in disseminating research information to his clients.C)violated the Code and Standards by sending the e-mail recommendation in a
39、dvance of the printed report. D)violated the Code and Standards by sending the e-mail recommendation to only some of his clients. Until they all provide him with e-mail addresses, he should treat them equally and use only standard mail for all.Question: 13 - 29531 Mary Okasaki, CFA, was approached b
40、y her client, Robert Jordan, about his interest in making a charitable contribution to a charity that would benefit children. He told her that he wanted the donation to be $100,000, that he wanted to donate appreciated securities from his account with Okasaki, and that he wanted the contribution to
41、bring him tax advantages.Okasaki will: A)violate the Code and Standards if she informs the local director of Childrens Charity that the director should call Jordan about a possible donation.B)not violate the Code and Standards if she informs the local director of Childrens Charity that her client, R
42、obert Jordan, is interested in making a significant contribution to the charity and that Jordan will be contacting the charity. C)violate the Code and Standards if she informs the local director of Childrens Charities that she has an unnamed client who is interested in making a significant contribut
43、ion to the charity and that the client will be contacting the charity. D)not violate the Code and Standards if she arranges a lunch meeting with the local director of Childrens Charities and tells the director Jordans name but no other details until they are in the meeting. Question: 14 - 29532 Laur
44、a Field, CFA, is a representative of Valley Investments. Valley owns a significant position in Datatronics, a regional company whose stock Valley acquired upon Datatronics initial public offering some years ago. Most portfolios managed by Valley on behalf of its clients also included Datatronics sto
45、ck. Field had a meeting with a prospect during which she discussed potential positions the firm might place in her portfolio. She did not mention Valleys position in Datatronics.Field has: A)violated the Code and Standards in not disclosing the firms position in Datatronics only if Datatronics stock
46、 were to be placed in the prospects portfolio.B)violated the Code and Standards in not disclosing the firms position in Datatronics.C)not violated the Code and Standards because the firms ownership of Datatronics could not reasonably be expected to impair Fields ability to make unbiased recommendati
47、ons.D)not violated the Code and Standards because Field did not personally own any Datatronics stock.Question: 15 - 29533 Vijay Gill, CFA, leases office space from Land Bank in exchange for an agreement that Gill will pay Land 20 percent of any fees paid by Land customers to Gill for investment mana
48、gement services. Gill has also retained Bloom Advisors to act as subadvisor for Gills clients. Under the terms of their agreement, Gill pays Bloom 0.25 percent annually of Gills assets under management.Next week, Gill is meeting with Randolph Singh, a Land Bank customer, who is interested in Gills asset management services.Gill: A)must disclose to Singh the terms of the arrangements he has with both Land Bank and Bloom Advisors.B)must disclose to Singh the terms of the Land Bank referral arr
