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1、Schweser Printable Tests - Level 1 - EXAM 3 Morning - 180 minutes - Level 1 - EXAM 3 MorningYou can print this page by going to file - print in your internet browser. Ethics - 18 Questions - 27 minutesQuestion: 1 - 23424 The Investment Banking Department of MLB&J often receives material nonpublic in
2、formation that could have considerable value to MLB&Js brokerage clients. To protect itself and to conform to the AIMR Code of Ethics and Standards of Professional Conduct MLB&J should: A)temporarily prohibit buy and sell recommendations on the securities during periods when the Investment Banking D
3、epartment has access to material nonpublic information.B)carefully monitor the flow of information between the Investment Banking Department and the brokerage operation.C)contact the firms involved and request that they make this information available to the public before MLB&J allows its clients to
4、 trade in these securities.D)prohibit MLB&J analysts from making buy or sell recommendations on this information until ten business days after the receipt of this information.Question: 2 - 28579 If an analyst undertakes an independent consulting practice while employed, they must get written permiss
5、ion from both their employer and the firm who is hiring their consulting services. This permission request to your consulting client should mention: A)the identity of your employer.B)what your employer would charge for similar services.C)that you are performing independently of your employer.D)all o
6、f these choices are correct.Question: 3 - 28580 Which of the following are violations of Standard II(B), Professional Misconduct? Being: A)all of these choices are correct.B)convicted of a felony.C)intoxicated at the office.D)convicted of multiple misdemeanors.Question: 4 - 28581 If you suspect that
7、 a colleague is violating the law you should: A)consult with the company counsel to determine if in fact a law is being violated.B)report the illegal activity to AIMRs Professional Standards Review Board for action.C)report all illegal activities to the appropriate regulatory agency.D)associate your
8、self with the illegal activity.Question: 5 - 28582 Gordon McKinney, CFA, works in the trust department of a bank. The banks trust account holds a large block of a particular company. McKinney learns that this company is going to buy back one million shares at 15 percent over market on a first come f
9、irst served basis. McKinney immediately told his mother in law to tender her shares but waited until the end of the day to tender the trusts shares. McKinney: A)violated Standard IV(A.3), Independence and Objectivity.B)violated Standard IV(B.4), Priority of Transactions.C)violated Standard V(A), Pro
10、hibition Against the Use of Material Nonpublic Information.D)violated Standard III(B), Duty to Employer.Question: 6 - 29268 All of the following activities might constitute a violation of Standard III(B), Duty to Employer, EXCEPT: A)solicitation of the employers clients prior to termination of emplo
11、yment.B)misappropriation of client lists.C)solicitation of the employers clients following termination of employment.D)misuse of confidential information.Question: 7 - 29269 Jacob Allen, CFA, decides he could make more money if he started his own company. Which of the following steps would NOT viola
12、te Standard III(B), Duty to Employer? A)Getting written permission from his employer to call the clients and solicit their business for his new firm.B)Taking home his current employers client lists, investment statements and marketing presentations.C)Copying his employers computer models because the
13、y fit perfectly with his new business.D)Taking home the employers buy lists.Question: 8 - 29270 When providing outside services, a member should provide all of the following information to her current employer EXCEPT: A)the types of services to be provided.B)the compensation she will receive.C)the e
14、xpected duration of the services.D)a promise to remit an agreed-upon percentage of the proceeds to the current employer.Question: 9 - 29271 Chip Lawson, CFA, is working on an outside consulting project for which he has not yet been paid. His boss, a CFA charterholder as well, finds out and accuses C
15、hip of violating Standard III(B), Duty to Employer. Chip disagrees. Which of the following statements regarding this situation is TRUE? A)The boss is correct, a violation has occurred because Chip could eventually be paid for the project.B)The boss is wrong, no violation has occurred because no mone
16、y has changed hands.C)The boss is wrong, no violation has occurred because the Duty to Employer standard does not address consulting opportunities.D)Chip is correct, no violation has occurred because Standard III(B) specifically states that in order for a violation to occur, the firm receiving the c
17、onsulting work must file a complaint with Chips employer.Question: 10 - 29272 With respect to possible conflicts of interest, members have a duty to disclose to: A)both their employer and their clients.B)only their employer.C)only their clients.D)neither employers nor clients must be informed but th
18、e member must use prudent judgment. Question: 11 - 29273 To comply with standard III(D), Disclosure of Additional Compensation Arrangements, members should do all of the following EXCEPT: A)immediately make a written report to their employer specifying any compensation benefits they receive.B)reject
19、 any outside compensation immediately because it is not appropriate to accept outside compensation in a business setting.C)immediately make a written report of any services they expect to receive.D)state the terms of oral or written agreements regarding the compensation and the duration of the agree
20、ment.Question: 12 - 29274 If a supervisor fails to detect violations of the Code and Standards, all of the following are possible EXCEPT: A)If the supervisor makes a reasonable effort to detect violations and fails, she is not in violation of III(E), Responsibilities of Supervisors.B)If no effort is
21、 made to detect violations, the supervisor is in violation of III(E), Responsibilities of Supervisors.C)If the supervisor makes a reasonable effort to detect violations and fails, she is in violation of III(E), Responsibilities of Supervisors.D)Even if the supervisor delegates supervisory responsibi
22、lity, she is still responsible for violations.Question: 13 - 29275 An incentive offered by a client, such as a free vacation or a cash bonus, to inspire high performance is: A)not allowable under any circumstances.B)allowable if the manager gets approval from her employer to accept the incentive.C)a
23、llowable under any circumstances.D)allowable as long as she informs her employer that she intends to accept the incentive.Question: 14 - 29276 Standard IV, Relationships with and Responsibilities to Clients and Prospects, require members to do all of the following EXCEPT: A)get employer approval for
24、 all investment recommendations involving high dollar amounts.B)exercise diligence and thoroughness in making investment recommendations or in taking investment actions.C)have a reasonable and adequate basis, supported by appropriate research and investigation, for such recommendations or actions.D)
25、maintain appropriate records to support the reasonableness of such recommendations or actions.Question: 15 - 29277 Members are allowed to make recommendations based on all of the following EXCEPT: A)the firms research.B)the research of another party or firm that has exercised diligence and thoroughn
26、ess.C)a quantitatively oriented process designed to rank securities.D)the well-reasoned opinion of the money manager.Question: 16 - 29278 One of the most common violations of Standard IV(A2), Research Reports, is the failure to separate: A)fact from fiction.B)optimism from fact.C)optimism from pessi
27、mism.D)the past from the future.Question: 17 - 29279 Which of the following statements about fiduciaries is FALSE? A)Fiduciaries act for the benefit of another party.B)The duty of a fiduciary exceeds that of other business relationships because the fiduciary is in a position of trust.C)Fiduciaries a
28、re often required by securities laws to make up losses when they occur as a result of inappropriate investments.D)Fiduciaries owe undivided loyalty to their clients and must place the clients interests before their own.Question: 18 - 29280 There are several procedures to adopt and comply with Standa
29、rd IV(B3), Fair Dealing. All of the following are procedures the firm should employ EXCEPT: A)require board approval for all recommendation changes.B)limit the number of people privy to recommendations and changes.C)shorten the time frame between initiation and dissemination.D)publish personnel guid
30、elines for pre-dissemination.Quantitative Analysis - 18 Questions - 27 minutesQuestion: 19 - 18896 Given the following frequency distribution:ClassFrequency10 up to 30530 up to 501050 up to 701570 up to 905Which of the following statements is FALSE?A)The class interval is 20.B)The class frequency of
31、 the third class is 15.C)The relative class frequency of the second class is 14.28.D)The mean of the frequency distribution is 51.43.Question: 20 - 18897 Which of the following statements is TRUE? A)The geometric mean is always less than or equal to the arithmetic mean.B)When a data sets distributio
32、n is significantly skewed the mean should not be used to represent the data set.C)The mode for data grouped into a frequency distribution can be approximated by the midpoint of the class with the largest class frequency.D)All of these choices are correct.Question: 21 - 28572 Which of the following s
33、tatements about the normal probability distribution is TRUE? A)The normal curve can be used to approximate a binomial probability distribution if an adjustment factor of .5 is added to the observation when calculating Z. Z = (X adj)- mean/. B)The normal curve is asymmetrical about its mean.C)The sta
34、ndardized normal distribution has a mean of zero and a standard deviation of 10.D)Sixty-eight percent of the area under the normal curve falls between 0 and +1 standard deviations from the mean.Question: 22 - 28573 How much would the following income stream be worth assuming a 12 percent discount ra
35、te? $100 received today $200 received 1 year from today $400 received 2 years from today $300 received 3 years from today A)$1,112.44.B)$810.98.C)$721.32.D)$865.34.Question: 23 - 28574 What is the value in five years of $100 invested today at an interest rate of 10 percent compounded quarterly? A)$1
36、50.00.B)$159.33.C)$163.86.D)$161.05.Question: 24 - 28575 An investor wants to be sure to always earn at least a 5 percent rate of return on their investments. They are looking at an investment that has a normally distributed probability distribution with an expected rate of return of 10 percent and
37、a standard deviation of 5 percent. What is the probability of meeting or exceeding the return expectations in any given year? A)84.0%.B)97.5%.C)34.0%.D)50.0%. There is a 40 percent chance that the economy will be good next year and a 60 percent chance that it will be bad. If the economy is good, the
38、re is a 50 percent chance of a bull market, a 30 percent chance of a normal market, and a 20 percent chance of a bear market. If the economy is bad, there is a 20 percent change of a bull market, a 30 percent chance of a normal market, and a 50 percent chance of a bear market. Question: 25 - 28576 W
39、hat is the joint probability of a good economy and a bull market? A)20%.B)12%.C)32%.D)50%.Question: 26 - 28576 What is the probability of a bull market next year? A)50%.B)32%.C)12%.D)20%.Question: 27 - 28577 You project that XYZs return on equity varies with the state of the economy in the following
40、 way:State of EconomyProbability of OccurrenceCompany ReturnsGood.2020%Normal.5015%Poor.3010%What is the standard deviation of XYZs expected return on equity?A)12.250%.B)3.500%.C)1.225%.D)1.450%.Question: 28 - 28578 Given the following data: 40 percent of your prospects have only undergraduate degre
41、es while 60 percent have MBAs. 80 percent of the undergraduates buy your product while 50 percent of the MBAs do You have just learned that X purchased your product. Based on this information, you would like to know the revised probability of X having an MBA. Which of the following statements is FAL
42、SE?A)The posterior probability (P(A1|B) of X being an MBA is .26.B)The posterior probability (P(A1|B) of X being an MBA is .48.C)The probability that undergraduates (A2) will buy (B) is P(B|A2) and is called a conditional probability.D)The prior probability (P(A1) of X having an MBA is .60.Question:
43、 29 - 29341 Given the following probability distribution, find the covariance the of expected returns for stocks A and B.Event P(Ri)RARBRecession.10-5%4Below Average.30-2%8Normal.5010%10Boom.1031%12A)0.00109.B)0.00032.C)0.00174.D)0.00213.Question: 30 - 28564 Which of the following statements is FALS
44、E? A)A Type I error is rejecting the null hypothesis when it is actually true.B)If the calculated Z statistic exceeds the critical Z statistic range reject the null hypothesis.C)The test statistic (Z =(X - ) / (/n) tells you which significance level to use.D)The confidence interval for a two tailed
45、test at the .05 level of significance is that the sample mean falls between + or -1.96 /n of the null hypothesis value.Question: 31 - 28565 Given the following hypothesis: The null hypothesis is H0: = 5 The alternative is H1: does not equal 5 The mean of a sample of 17 is 7 The population standard d
46、eviation is 2.0 What is the calculated Z statistic? A)4.00.B)8.00.C)8.25.D)4.12.Question: 32 - 28566 Which of the following are assumptions concerning linear regression? A)Homoskedasticity: the standard deviations of each of the Y distributions are equal.B)Linearity: relative to the X variable the mean of each Y distribution lies along a straight line.C)All of these choices are correct.D)Independence: the deviations of the various Y variables from the regression line are independent from each other.Question: 33 - 28567 The R2 of a simple regression of two factors measures the: A)percent
