What is the effective date for compliance with the AIMR-PPS for U.S. and Canadian investments?
Answer(s): C
From January 1, 1993, going forward, all of the firm's actual discretionary fee-paying nontaxable portfolios solely invested in U.S. and/or Canadian investments ("North American Portfolios") must be presented in composites that adhere to the Standards.
Standard II (C) - Prohibition against Plagiarism - addresses all of the following forms of communication, except:
Answer(s): F
Standard II (C) does not concern the form of communication of information to clients, prospects, employees, or the general public. Rather, it concerns the need to acknowledge the source of information used by the member to avoid the appearance of plagiarism.
Sterling Drachma is a senior investment consultant currently researching a few high-risk internet stock companies which recently started trading on NASDAQ. Sterling manages 5 large and private investment accounts for which he has discretionary investment authority. Sterling is about 3 years away from retirement and his retirement portfolio is managed by Franc Escudo. Sterling has concluded from his research that two of the internet stocks he has been following are great buys and instructs Franc to divert part of the retirement investments into these stocks. Franc executes the orders as soon as he receives them. Sterling then instructs his brokers to buy the stocks for the two discretionary accounts that he knows are inclined toward high-risk investments. He does not buy any for the remaining three accounts since those are income-oriented, low-risk accounts. In this sequence of events, which of the following is/are true?
Answer(s): D
Franc is managing a personal portfolio and as such must execute the orders of his client. The fact that it is a retirement account makes no difference in this situation. Franc would be in violation if he was managing a pension portfolio or a personal trust portfolio and the investments were deemed in violation of plan directives.Franc, however, should try to understand Sterling's motives in the redeployment of funds since this could prevent his client from what could be reckless investment. Sterling, for his part, as definitely violated Standard IV (B.4) - Priority of Transactions - by trading for his retirement account before trading for his client accounts.Personal transactions should never take precedence over client and employer transactions. He has, however, not violated Standard IV (B.3) - Fair Dealing - by not treating all his accounts equally. Standard IV (B.3) requires a fair treatment of all clients, not an equal treatment precisely because different accounts have different investment needs and risk appetites. The internet stocks should only be bought for accounts for which they are a suitable investment.
Jorgenson is a senior bond analyst with Morgan Co., a large investment banking firm. Over the past quarter, Morgan's corporate bond department has been betting on the credit spreads in the market narrowing and in anticipation, has invested a large amount of capital in the bonds of two firms, High Tech and Amerizone.com. Unfortunately, the credit spreads have not displayed much activity and as the quarter end is approaching, the department wants to unload the bonds. For this, it puts pressure on Jorgenson to push the bonds on some ofhis larger clients. Jorgenson believes that both the bonds are good investments since High tech and Amerizone have been doing very well and their prospects look rosy. So he goes ahead and convinces his clients to purchase as much as a third of Morgan's bond holdings in these companies. Morgan has
Answer(s): A
There is no evidence that Jorgenson has bowed to any external pressure in recommending the bonds to his clients. If his analysis indicates, in his judgment, that a security is a good investment and suits the needs of a client, then he should recommend it, regardless of whether there is any external pressure for or against that course of action.
Emmy Noether is a senior division manager at Harding & Harding, a money management firm. Emmy is quite fastidious about following the rules of the investment industry and has established specific procedures and guidelines designed to prevent any violations. Recently, it surfaced that one of the employees reporting to Emmy, William Bathwater, had been secretly using inside information on a computer maker to generate profits in his portfolio. William had been extremely clever at hiding these profits and only a serendipitous audit by the Compliance Department revealed the pattern. Emmy, in her capacity as William's supervisor, has:
Under Standard III (E) - Responsibilities of Supervisors, members must take reasonable care to ensure that their subordinates do not violate any laws or the code of conduct. This includes designing effective procedures to deter fraudulent activity. However, no amount of scrutiny can prevent the cleverest of frauds. What is expected of the members is that they be diligent enough in carrying out their duties. In the present case, given the facts, Emmy cannot be faulted for William's criminal activity since she hasn't been found to be negligent in any way. Hence, she has not violated Standard III (E) - Responsibilities of Supervisors nor any other standards.
Share your comments for CFA CFA I exam with other users:
i just passed. this exam dumps is the same one from prepaway and examcollection. it has all the real test questions.
is this a valid prince2 practitioner dumps?
all are relatable questions
might help me to prepare for the exam
just paid and downlaod the 2 exams using the 50% sale discount. so far i was able to download the pdf and the test engine. all looks good.
i think it should be a,c. option d goes against the principle of building anything custom unless there are no work arounds available
very legible
is this exam accurate or helpful?
please upload dump, i have exam in 2 days
this is useful
question 232 answer should be perimeter not netowrk layer. wrong answer selected
nice questions
hi team, could you please provide this dump ?
very helpful to clear the exam and understand the concept.
i think it is great that you are helping people when they need it. thanks.
cannot evaluate yet
a laptops wireless antenna is most likely located in the bezel of the lid
good examplae to learn basic
this is useful information
looks usefull
question 81 should be c.
question 18 : response isnt a ?
plaese add questions
is dumps still valid ?
thanks for this
please upload questions
please upload the question dump for professional machinelearning
question 4 answer is c. this site shows the correct answer as b. "adopt a consumption model" is clearly a cost optimization design principle. looks like im done using this site to study!!!
number 52 answer is d
just started preparing for my exam , and this site is so much help
question 35 is incorrect, the correct answer is c, it even states so: explanation: when a vm is infected with ransomware, you should not restore the vm to the infected vm. this is because the ransomware will still be present on the vm, and it will encrypt the files again. you should also not restore the vm to any vm within the companys subscription. this is because the ransomware could spread to other vms in the subscription. the best way to restore a vm that is infected with ransomware is to restore it to a new azure vm. this will ensure that the ransomware is not present on the new vm.
i would like to take psm1 exam.
cbd and pdb are key to the database
the purchase and download process is very much streamlined. the xengine application is very nice and user-friendly but there is always room for improvement.