CFA [chartered financial
analyst] final exam WITH
QUESTIONS AND
VERIFIED CORRECT
ANSWERS GRADED A+
GUARANTEED PASS
Dinah Bonnevie, CFA, was elected to the board of
directors of a worldwide charitable organization with
the written consent of her employer. The
organization has recently started a fund‐raising
campaign for a vaccination program in Africa.
Knowing that most of her clients make regular
charitable donations, she includes a section in her
regular newsletter covering her directorship with the
charity and the fund‐raising campaign. Did Bonnevie
,violate Standard III(E) Preservation of
Confidentiality? - ANSWER-No
In the event that local law is in conflict with GIPS,
firms must: - ANSWER-comply with local law and
disclose the nature of the conflict.
Lana Torres, CFA, is a founder of her own private
investment advisory practice serving senior clients
with high net worth. Since inception, Torres has
always invested her clients' money in blue‐chip
stocks with high dividends. With the recent boom of
technology stocks, Torres determined that the
technology stocks will have a better return for her
clients in the medium term and allocated a portion of
her clients' assets into the small‐cap technology
stocks that she has done thorough analysis on. She
plans to inform clients of this change in her next
market commentary in three months. Did Torres
violate any CFA Institute Standards? - ANSWER-
Yes, because she did not inform her client about the
change in the investment process promptly.
Joe is in charge of a very large equity management
firm that does a significant amount of trading with
soft‐dollar commissions. At the end of the year, what
percent of the soft‐dollar commissions is he allowed
,to pay out in annual bonuses to his employees? -
ANSWER-0%
During an internal meeting, Jack O'Neil, CFA, who is
the fund manager of the firm, had a disagreement
with an analyst on one of the stock picks. At the end,
Jack stated that the analyst must listen to him
because he is a CFA charter holder and therefore
knows better. Did Jack violate any of the CFA
Institute Standards of Professional Conduct
according to the Standards of Practice Handbook? -
ANSWER-Yes, he violated the standard pertaining
to Responsibilities as a CFA Institute Member.
Firm X, because of portfolio underperformance
relative to its stated benchmark, decides to switch to
a passive asset management strategy and does not
inform its clients.
At Firm Y, where individual asset managers are
responsible for security selection, a new policy is
implemented in which only stocks on an approved
list constructed by the firm's senior manager may be
purchased for client accounts. Several portfolio
managers do not inform their respective clients.
Firm Z recently changes its external manager of
property investments and provides information of
this change in the firm's annual report where
, external advisers are listed. The annual report is due
for publication in seven months.
Which firm(s) violated Standard V(B)? - ANSWER-
Firm Y and Firm Z
A firm's culture that promotes loyalty to the firm over
its clients is an example of: - ANSWER-A situational
influence
Toby Green, CFA, works in an equity brokerage
department at Mulberry Securities. Green has
reviewed a report from the firm's research
department that suggests Crown Appliances is rated
a "buy" because the sales figures for the firm's new
products have been better than those of the closest
competition. Green lives on the same street as the
CFO of Crown Appliances. While waiting for the train
to work, Green accidentally overheard the chief
financial officer of Crown Appliances report to his
colleague on a mobile phone about an
announcement in the morning newspaper that a
competitor has just launched a website for appliance
distribution over the Internet. Upon returning to his
office, Green tipped his father to sell his holding
based on this new information, but he still
recommends a "buy" to all Mulberry's clients. Green:
- ANSWER-Was in full compliance with the Code
and Standards.
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