金程教育CFA一级ethics 练习题，总共18道 27分钟内完成，谢谢金程教育金融研究院的研究员们！

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Questions 1 through 18 relate to Ethical and Professional Standards

 

1.Which statement about a manager's use of client brokerage commissions violates the Code and Standards?

A.A client may direct a manager to use that client's brokerage commissions to purchase goods and services for that client.

B.Client brokerage commissions should be used to benefit the client and should be commensurate with the value of the brokerage and research services received.

C.Client brokerage commissions may be directed to pay for the investment manager's operating expenses.

 

C is correct.

This question involves Standard III(A)—Loyalty, Prudence, and Care and the specific topic of soft dollars or soft commissions. Answer C is the correct choice because client brokerage commissions may not be directed to pay for the investment manager's operating expenses. Answer B describes how members and candidates should determine how to use brokerage commissions—that is, if the use is in the best interests of clients and is commensurate with the value of the services provided. Answer A describes a practice that is commonly referred to as "directed brokerage." Because brokerage is an asset of the client and is used to benefit the client, not the manager, such practice does not violate a duty of loyalty to the client. Members and candidates are obligated in all situations to disclose to clients their practices in the use of client brokerage commissions.

 

2.Miller heads the research department of a large brokerage firm. The firm has many analysts, some of whom are subject to the Code and Standards. If Miller delegates some supervisory duties, which statement best describes her responsibilities under the Code and Standards?

A.Miller's supervisory responsibilities do not apply to those subordinates who are not subject to the Code and Standards.

B.Miller no longer has supervisory responsibility for those duties delegated to her subordinates.

C.Miller retains supervisory responsibility for all subordinates despite her delegation of some duties.

 

C is correct.

Under Standard IV(C)—Responsibilities of Supervisors, members and candidates may delegate supervisory duties to subordinates but such delegation does not relieve members or candidates of their supervisory responsibilities. As a result, answer B is incorrect. Moreover, whether or not Miller's subordinates are subject to the Code and Standards is irrelevant to her supervisory responsibilities. Therefore, answer A is incorrect.

 

3.An investment management firm has been hired by ETV Corporation to work on an additional public offering for the company. The firm's brokerage unit now has a "sell" recommendation on ETV, but the head of the investment banking department has asked the head of the brokerage unit to change the recommendation from "sell" to "buy" According to the Standards, the head of the brokerage unit would be permitted to:

A.increase the recommendation by no more than one increment (in this case, to a "hold" recommendation).

B.place the company on a restricted list and give only factual information about the company.

C.assign a new analyst to decide if the stock deserves a higher rating.

 

B is correct

This question relates to Standard I(B)—Independence and Objectivity. When asked to change a recommendation on a company stock to gain business for the firm, the head of the brokerage unit must refuse in order to maintain his independence and objectivity in making recommendations. He must not yield to pressure by the firm's investment banking department. To avoid the appearance of a conflict of interest, the firm should discontinue issuing recommendations about the company. Answer A is incorrect; changing the recommendation in any manner that is contrary to the analyst's opinion violates the duty to maintain independence and objectivity. Answer C is incorrect because merely assigning a new analyst to decide whether the stock deserves a higher rating will not address the conflict of interest.

 

4.Jurgen is a portfolio manager. One of her firm's clients has told Jurgen that he will compensate her beyond the compensation provided by her firm on the basis of the capital appreciation of his portfolio each year. Jurgen should:

A.turn down the additional compensation because it will result in conflicts with the interests of other clients' accounts.

B.turn down the additional compensation because it will create undue pressure on her to achieve strong short-term performance.

C.obtain permission from her employer prior to accepting the compensation arrangement.

 

C is correct.

This question involves Standard W(B)—Additional Compensation Arrangements. The arrangement described in the question—whereby Jurgen would be compensated beyond the compensation provided by her firm, on the basis of an account's performance—is not a violation of the Standards as long as Jurgen discloses the arrangement in writing to her employer and obtains permission from her employer prior to entering into the arrangement. Answers A and B are incorrect; although the private compensation arrangement could conflict with the interests of other clients and lead to short-term performance pressures, members and candidates may enter into such agreements as long as they have disclosed the arrangements to their employer and obtained permission for the arrangement front their employer. 

 

5.Brown works for an investment counseling firm. Green, a new client of the firm, is meeting with Brown for the first time. Green used another counseling firm for financial advice for years, but she has switched her account to Brown's firm. After spending a few minutes getting acquainted, Brown explains to Green that she has discovered a highly undervalued stock that offers large potential gains. She recommends that Green purchase the stock. Brown has committed a violation of the Standards. What should she have done differently?

A.Brown should have determined Green's needs, objectives, and tolerance for risk before making a recommendation of any type of security.

B.Brown should have thoroughly explained the characteristics of the company to Green, including the characteristics of the industry in which the company operates.

C.Brown should have explained her qualifications, including her education, training, experience, and the meaning of the CFA designation.

 

A is correct.

In this question, Brown is providing investment recommendations before making inquiries about the client's financial situation, investment experience, or investment objectives. Brown is thus violating Standard III(C)—Suitability. Answers B and C provide examples of information members and candidates should discuss with their clients at the outset of the relationship, but these answers do not constitute a complete list of those factors. Answer A is the best answer.

 

6.Grey recommends the purchase of a mutual fund that invests solely in long¬term U.S. Treasury bonds. He makes the following statements to his clients:

Statement 1: "The payment of the bonds is guaranteed by the U.S. government; therefore, the default risk of the bonds is virtually zero."

Statement 2: "If you invest in the mutual fund, you will earn a 10 percent rate of return each year for the next several years based on historical performance of the market."

Did Grey's statements violate the CFA Institute Code and Standards?

A.Neither statement violated the Code and Standards.

B.Only Statement 1 violated the Code and Standards.

C.Only Statement 2 violated the Code and Standards.

 

C is correct.

This question involves Standard I(C)—Misrepresentation. Statement 1 is a factual statement that discloses to clients and prospects accurate information about the terms of the investment instrument. Statement 2, which guarantees a specific rate of return for a mutual fund, is an opinion stated as a fact and, therefore, violates Standard I(C). If Statement 2 were rephrased to include a qualifying statement, such as "in my opinion, investors may earn. . .," it would not be in violation of the Standards.

 

7.An investment banking department of a brokerage firm often receives material nonpublic information that could have considerable value if used in advising the firm's brokerage clients. In order to conform to the Code and Standards, which one of the following is the best policy for the brokerage firm?

A.Permanently prohibit both "buy" and "sell" recommendations of the stocks of clients of the investment banking department.

B. Establish physical and informational barriers within the firm to prevent the exchange of information between the investment banking and brokerage operations.

C.Monitor the exchange of information between the investment banking department and the brokerage operation.

 

B is correct.

The best policy to prevent violation of Standard II(A)-Material Nonpublic Information is the establishment of firewalls in a (inn to prevent exchange of insider information. The physical and informational barrier of a firewall between the investment banking department and the brokerage operation prevents the investment banking department from providing information to analysts on the brokerage side who may be writing recommendations on a company stock. Prohibiting recommendations of the stock of companies that are clients of the investment banking department is an alternative, but answer A states that this prohibition would be permanent, which is not the best answer. Once an offering is complete and the material nonpublic information obtained by the investment banking department becomes public, resuming publishing recommendations on the stock is not a violation of the Code and Standards because the information of the investment banking department no longer gives the brokerage operation an advantage in writing the report. Answer C is incorrect because no exchange of information should be occurring between the investment banking department and the brokerage operation, so monitoring of such exchanges is not an effective compliance procedure for preventing the use of material nonpublic information.

 

8.Which of the following statements is a stated purpose of disclosure in Standard VI(C)—Referral Fees?

A.Disclosure will allow the client to request discounted service fees.

B.Disclosure will help the client evaluate any possible partiality shown in the recommendation of services.

C.Disclosure means advising a prospective client about the referral arrangement once a formal client relationship has been established.

 

B is correct.

Answer B gives one of the two primary reasons listed in the Handbook for disclosing referral fees to clients under Standard VI(C)¬Referral Fees. (The other is to allow clients and employers to evaluate the full cost of the services.) Answer A is inconsistent because Standard VI(C) does not require members or candidates to discount their fees when they receive referral fees. Answer C is inconsistent with Standard VI(C) because disclosure of referral fees, to be effective, should be made to prospective clients before entering into a formal client relationship with them.

 

9. A former hedge fund manager, Jackman, has decided to launch a new private wealth management firm. From his prior experiences, he believes the new firm needs to achieve US$1 million in assets under management in the first year. Jackman offers a $10,000 incentive to any adviser who joins his firm with the minimum of $200,000 in committed investments. Jackman places notice of the opening on several industry web portals and career search sites. Which of the following is correct according to the Code and Standards?

A. A member or candidate is eligible for the new position and incentive if he or she can arrange for enough current clients to switch to the new firm and if the member or candidate discloses the incentive fee.

B. A member or candidate may not accept employment with the new firm because Jackman's incentive offer violates the Code and Standards.

C. A member or candidate is not eligible for the new position unless he or she is currently unemployed because soliciting the clients of We member's or candidate's current employer is prohibited.

 

C is correct.

Standard IV(A)—Loyalty discusses activities permissible to members and candidates when they are leaving their current employer; soliciting clients is strictly prohibited. Thus, answer A is inconsistent with the Code and Standards even with the required disclosure. Answer B is incorrect because the offer does not directly violate the Code and Standards. There may he out-of-work members and candidates who can arrange the necessary commitments without violating the Code and Standards.

 

10.Pietro, president of Local Bank, has hired the bank's market maker, Vogt, to seek a merger partner. Local is currently not listed on a stock exchange and has not reported that it is seeking strategic alternatives. Vogt has discussed the possibility of a merger with several firms, but they have all decided to wait until after the next period's financial data are available. The potential buyers believe the results will be worse than the results of prior periods and will allow them to pay less for Local Bank. Pietro wants to increase the likelihood of structuring a merger deal quickly. Which of the following actions would most likely be a violation of the Code and Standards?

A.Pietro could instruct Local Bank to issue a press release announcing that it has retained Vogt to find a merger partner.

B.Pietro could place a buy order for 2,000 shares (or four tunes the average weekly volume) through Vogt for his personal account.

C.After confirming with Local's chief financial officer, Pietro could instruct Local to issue a press release reaffirming the firm's prior announced earnings guidance for the full fiscal year.

 

B is correct.

Through placing a personal purchase order that is significantly greater than the average volume, Pietro is violating Standard IIB—Market Manipulation. He is attempting to manipulate an increase in the share price and thus bring a buyer to the negotiating table. The news of a possible merger and confirmation of the firm's earnings guidance may also have positive effects on the price of Local Bank, but Pietro's action in instructing the release of the information does not represent a violation through market manipulation. Announcements of this nature are common and practical to keep investors informed. Thus, answers A and C are incorrect.

 

11.Cannan has been working from home on weekends and occasionally saves correspondence with clients and completed work on her home computer. Because of worsening market conditions, Cannan is one of several employees released by her firm. While Cannan is looking for a new job, she uses the files she saved at home to request letters of recommendation from former clients. She also provides to prospective clients some of the reports as examples of her abilities.

A.Cannan is violating the Code arid Standards because she did not receive permission from her former employer to keep or use the files after her employment ended.

B.Cannan did not violate the Code and Standards because the files were created and saved on her own time and computer.

C.Carman violated the Code and Standards because she is prohibited from saving files on her home computer.

 

A is correct.

According to Standard V(C)—Record Retention, Cannan needed the permission of her employer to maintain the files at home after her employment ended. Without that permission, she should have deleted the files. All files created as part of a member's or candidate's professional activity are the property of the firm, even those created outside normal work hours. Thus, answer B is incorrect. Answer C is incorrect because the Code and Standards do not prohibit using one's personal computer to complete work for one's employer.

 

12.During a round of golf, Rodriguez, chief financial officer of Mega Retail, mentions to Hart, a local investment adviser and long-time personal friend, that Mega is having an exceptional sales quarter. Rodriguez expects the results to be almost 10 percent above the current estimates. The next day, Hart initiates the purchase of a large stake in the local exchange-traded retail fund for her personal account.

A.Hart violated the Code and Standards by investing in the exchange-traded fund that included Mega Retail.

B.Hart did not violate the Code and Standards because she did not invest directly in securities of Mega Retail.

C.Rodriguez did not violate the Code and Standards because the comments made to Hart were not intended to solicit an investment in Mega Retail.

 

A is correct.

Hart's decision to invest in the retail fund appears directly correlated with Rodriguez's statement about the successful quarter of Mega Retail and thus violates Standard II(A)—Material Nonpublic Information. Rodriguez's information would be considered material because it would influence the share price of Mega Retail and probably influence the price of the entire exchange-traded retail fund. Thus, answer B is incorrect. Answer C is also incorrect because Rodriguez shared information that was both material and nonpublic. Company officers regularly have such knowledge about their firms, which is not a violation. The sharing of such information, however, even in a conversation between friends, does violate Standard II(A).

 

13.Paper was recently terminated as one of a team of five managers of an equity fund. The fund had two value-focused managers and terminated one of them to reduce costs. In a letter sent to prospective employers, Paper presents, with written permission of the firm, the performance history of the fund to demonstrate his past success.

A.Paper did not violate the Code and Standards.

B.Paper violated the Code and Standards by claiming the performance of the entire fund as his own.

C.Paper violated the Code and Standards by including the historical results of his prior employer.

 

B is correct.

Paper has violated Standard III(D)—Performance Presentation by not disclosing that he was part of a team of managers that achieved the results shown. If he had also included the return of the portion he directly managed, he would not have violated the standard. Thus, answer A is incorrect. Answer C is incorrect because Paper received written permission from his prior employer to include the results.

 

14.Jamison is a junior research analyst with Howard & Howard, a brokerage and investment banking firm. Howard & Howard's mergers and acquisitions department has represented the Britland Company in all of its acquisitions for the past 20 years. Two of Howard & Howard's senior officers are directors of various Britland subsidiaries. Jamison has been asked to write a research report on Britland. What is the best course of action for her to follow?

A.Jamison may write the report but must refrain from expressing any opinions because of the special relationships between the two companies.

B.Jamison should not write the report because the two Howard & Howard officers serve as directors for subsidiaries of Britland.

C.Jamison may write the report if she discloses the special relationships with the company in the report.

 

C is correct.

This question involves Standard VI(A)—Disclosure of Conflicts. The question establishes a conflict of interest in which an analyst, Jamison, is asked to write a research report on a company that is a client of the analyst's employer. In addition, two directors of the company are senior officers of Jamison's employer. Both facts establish that there are conflicts of interest that must be disclosed by Jamison in her research report. Answer B is incorrect because an analyst is not prevented from writing a report simply because of the special relationship the analyst's employer has with the company as long as that relationship is disclosed. Answer A is incorrect because whether or not Jamison expresses any opinions in the report is irrelevant to her duty to disclose a conflict of interest. Not expressing opinions does not relieve the analyst of the responsibility to disclose the special relationships between the two companies.

 

15.Rule has worked as a portfolio manager for a large investment management firm for the past 10 years. Rule earned his CFA charter last year and has decided to open his own investment management firm. After leaving his current employer, Rule creates some marketing material for his new firm. He states in the material, "In earning the CFA charter, a highly regarded credential in the investment management industry, I further enhanced the portfolio management skills learned during my professional career. While completing the examination process in three consecutive years, I consistently received the highest possible scores on the topics of Ethics, Alternative Investments, and Portfolio Management." Has Rule violated Standard VII(B)—Reference to CFA Institute, the CFA Designation, and the CFA Program in his marketing material?

A.Rule violated Standard VII(B) in stating that he completed the exams in three consecutive years.

B. Rule violated Standard VII(B) in stating that he received the highest scores in the topics of Ethics, Alternative Investments, and Portfolio Management.

C. Rule did not violate Standard VII(B).

 

B is correct.

According to Standard VII(B)—Reference to CFA institute, the CFA Designation, and the (TA Program, CFA Program candidates do not receive their actual scores on the exam. Topic and subtopic results are grouped into three broad categories, and the exam is graded only as "pass" or "lair Although a candidate may have achieved a topical score of "above 70 percent," she or he cannot factually state that she or he received the highest possible score because that information is not reported. Thus, answer C is incorrect. Answer A is incorrect as long as the member or candidate actually completed the exams consecutively. Standard VII(B) does not prohibit the communication of factual information about completing the CFA Program in three consecutive years.

 

16.Which one of the following actions will help to ensure the fair treatment of brokerage firm clients when a new investment recommendation is made?

A.Informing all people in the firm in advance that a recommendation is to be disseminated.

B.Distributing recommendations to institutional clients prior to individual accounts.

C.Minimizing the time between the decision and the dissemination of a recommendation.

 

C is correct.

This question, which relates to Standard III(B)—Fair Dealing, tests the knowledge of the procedures that will assist members and candidates in treating clients fairly when making investment recommendations. The steps listed in C will all help ensure the fair treatment of clients. Answer A may have negative effects on the fair treatment of clients. The more people who know about a pending change, the greater the chance that someone will inform some clients before the information's release. The firm should establish policies that limit the number of people who are aware in advance that a recommendation is to be disseminated, Answer B, distributing recommendations to institutional clients before distributing them to individual accounts, discriminates among clients on the basis of size and class of assets and is a violation of Standard III(B).

 

17. With respect to the Global Investment Performance Standards, which of the following is one of the nine sections containing investment performance provisions?

A.Real Estate.

B.Derivatives.

C.Legal and Ethical Considerations.

 

A is correct.

Real Estate is one of the nine sections in the 2010 edition of the GIPS standards. Derivatives and Legal and Ethical Considerations are not sections of the Standards.

 

18.According to the Fundamentals of Compliance section of the Global Investment Performance Standards, issues that a firm must consider when claiming compliance include all of the following except:

A.replicating performance.

B.properly defining the firm.

C.documenting firm policies and procedures used in establishing and maintaining compliance with the Standards.

 

A is correct.

Replication of performance is not included in the Fundamentals of Compliance section within the GIPS standards.

 

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