Exam (elaborations)
CFA, Mock Exam A - Morning Session Questions and Answers 2024
- Course
- Institution
CFA, Mock Exam A - Morning Session
[Show more]
Seller
Follow
julianah420
Reviews received
Content preview
CFA, Mock Exam A - Morning SessionWhat are the the nine major provisions of the Global Investment Performance
Standards (GIPS)? - answer1)Calculation Methodology
2)Composite Construction
3)Disclosure
4)Fundamentals of Compliance
5)Input Data
6)Presentation and Reporting
7)Private Equity
8)Real Estate
9)Wrap Fee/ (SMA) Separately Managed Account Portfolios.
What are the two primary principles of the CFA Institute Rules of Procedure for
Proceedings Related to Professional conduct are? - answer1) Confidentiality of
proceedings
2) fair process to the member and candidates
In order to achieve compliance with GIPS Standards, it is recommended that firms -
answeradopt the broadest, most meaningful definition of the firm
what are the six components of the CFA Code of Ethics - answer1)Professionalism
2)Integrity of Capital Markets
3)Duties to Clients
4)Duties to Employers
5)Investment Analysis, Recommendations, & Actions
6)Conflicts of Interest (must disclose)
Because Atlantic management thinks hedge funds are a fad, she does not inform her
supervisor about the hedge fund she created. This violates what standard -
answerdisclosure of conflicts
Gips Standards benefit what two main groups? - answerInvestment management firms
and prospective clients
The final stage of Alzheimer's is when individuals lose the ability to respond to their
environment, the ability to speak, and, ultimately, the ability to control movement.
Leisberg is the charismatic founder of Red Ribbon, and under his leadership the
company grew to become one of the largest in the industry. Upon learning this, what
should the analyst do? - answerencourage Red Ribbon Mining management to disclose
the president's medical condition.
, the minimum rate of return an investor must receive in order to accept an investment is
best described as the? - answerrequired rate of return
money-weighted rate of return (MWR) - answersensitive to the additions and
withdrawals of funds in a portfolio over the course of an investment.
---
If, at inception, investors A and B invest amounts of different size in the same fund but
then neither add nor withdraw any cash for two years, they will obtain exactly the same
MWR. In contrast, if investor A increases the investment in the fund at the end of year 1
and investor B does not make any additions or withdrawals, then Investor A will have a
lower MWR than investor B because in year 2 the fund underperformed with respect to
year 1
All else held constant, the width of a confidence interval for a population mean is most
likely to be smaller if the sample size is: - answerLarger and the degree of confidence is
lower
A two-tailed test of the null hypothesis that the mean of a distribution is equal to 4.00
has a p-value of 0.0567. Using a 5% level of significance (i.e., α = 0.05), the best
conclusion is to: - answerfail to reject the null hypothesis
A portfolio manager would like to calculate the compound rate of return on an
investment. Which of the following mean returns will he most likely use? -
answerGeometric
A portfolio manager estimates the probabilities of the following events for a mutual fund:
Event A: the fund will earn a return of 5%.
Event B: the fund will earn a return below 5%.
The least appropriate description of the events is that they are: - answer=exhaustive
(they are dependent and mutually exclusive(can not occur at the same time)
The effective annual yield (EAY) for an investment is 8.0%. Its bond equivalent yield is
closest to: - answerEAY = (1 + YTM)365/t − 1
Semiannual yield to maturity, YTM = (1 + 0.08)0.5 − 1 = 0.03923 = 3.923%
Bond equivalent yield = 2 × YTM = 2 × 3.923% = 7.85%
Bayes' formula - answerP(Event | Information) =
[P(Information|Event)/ *P(event)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
60904 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now