CFA Level I Chartered Financial Analyst CFA I Dumps in PDF

Free CFA CFA I Real Questions (page: 56)

Which of the following statements is NOT true relating to Standard IV (B.3) - Fair Dealing?

  1. This standard covers the conduct of two groups: those who prepare recommendations and those who take investment action.
  2. Members shall deal equally and objectively with all clients.
  3. Only through the fair treatment of all parties can the investment management profession maintain the confidence of the investing public.
  4. None of these answers.
  5. This standard covers investment action such as general purchases, new issues, or secondary offerings.

Answer(s): B

Explanation:

The operative word is "fairly," not "equally." The term "fairly" implies that the member must take care not to discriminate against any customers or clients when disseminating investment recommendations. Members could not possibly reach all clients "equally" (i.e., simultaneously). In addition, each client has unique needs, investment criteria and investment objectives.



Grazelle Garbo has decided to change the recommendation on one of the firms she is following from hold to buy. She has communicated her research report to her senior manager, who is reviewing it. If the recommendation passes muster, it will be released three days from now. In the meanwhile, Grazelle has decided to follow her research and purchase the stock for several of her clients' accounts for which the stock is an appropriate investment and for which she has discretionary investment powers. In the course of the luncheon meeting that same day, she mentioned that she had bought the stocks for some client accounts to one of her prospective clients and described her research which caused her to change her recommendation.
Grazelle has

  1. violated Standard IV (B.3) - Fair Dealing - by revealing the change in recommendation.
    II. violated Standard IV (B.5) - Preservation of Confidentiality - by revealing the information about stock purchase.
    III. did not violate the Ethics code.
  2. I and II only
  3. II only
  4. III only
  5. I only

Answer(s): D

Explanation:

Since Grazelle has not revealed any information about the specific client accounts or any confidential information, she is not in violation of Standard IV (B.5) - Preservation of Confidentiality. However, by revealing the information on the change in recommendation prematurely to one of her prospective clients, she has violated Standard IV (B.3) - Fair Dealing. The information is potentially quite valuable and giving to one client before another in a partisan fashion is a violation of the AIMR code of Ethics.



Which of the following AIMR Standards pertains to the use of professional designation?

  1. II (A)
  2. I
  3. III (A)
  4. III (B)

Answer(s): A

Explanation:

Standard II (A) - Use of Professional Designation - states the responsibility of AIMR members, CFA charterholders and candidates for the CFA designation to use their professional designations, or their candidacies for the designation, properly and in a manner that does not mislead the investing public or others.



In reference to AIMR-PPS, which of the following is/are true?

  1. The PPS are explicitly incorporated in the AIMR Code of Ethics and Standards of Professional Conduct.
    II. In case of system incompatibilities, the firm can claim compliance for only those assets that are measured and monitored on compatible systems.
    III. Plan sponsors, consultants and software vendors cannot claim compliance with the PPS; they can only endorse or require their clients to be in compliance.
  2. I, II and III
  3. III only
  4. II and III only
  5. I only

Answer(s): B

Explanation:

The PPS are an adjunct to the AIMR Code of Ethics and Standards of Professional Conduct and not explicitly incorporated in that framework. Compliance with PPS is voluntary, not required.



Standard IV (B.2) deals with ________.

  1. compensation
  2. fair dealing
  3. soft dollars
  4. competition
  5. none of these answers
  6. suitability
  7. proxy voting
  8. disclosure of conflicts

Answer(s): F

Explanation:

Standard IV (B.2) deals with the appropriateness and suitability of investment recommendations for each portfolio or client.



Share your comments for CFA CFA I exam with other users:

A
Albin
10/13/2023 12:37:00 AM

good ................

P
Passed
1/16/2022 9:40:00 AM

passed

H
Harsh
6/12/2023 1:43:00 PM

yes going good

S
Salesforce consultant
1/2/2024 1:32:00 PM

good questions for practice

R
Ridima
9/12/2023 4:18:00 AM

need dump and sap notes for c_s4cpr_2308 - sap certified application associate - sap s/4hana cloud, public edition - sourcing and procurement

T
Tanvi Rajput
10/6/2023 6:50:00 AM

question 11: d i personally feel some answers are wrong.

A
Anil
7/18/2023 9:38:00 AM

nice questions

C
Chris
8/26/2023 1:10:00 AM

looking for c1000-158: ibm cloud technical advocate v4 questions

S
sachin
6/27/2023 1:22:00 PM

can you share the pdf

B
Blessious Phiri
8/13/2023 10:26:00 AM

admin ii is real technical stuff

L
Luis Manuel
7/13/2023 9:30:00 PM

could you post the link

V
vijendra
8/18/2023 7:54:00 AM

hello send me dumps

S
Simeneh
7/9/2023 8:46:00 AM

it is very nice

J
john
11/16/2023 5:13:00 PM

i gave the amazon dva-c02 tests today and passed. very helpful.

T
Tao
11/20/2023 8:53:00 AM

there is an incorrect word in the problem statement. for example, in question 1, there is the word "speci c". this is "specific. in the other question, there is the word "noti cation". this is "notification. these mistakes make this site difficult for me to use.

P
patricks
10/24/2023 6:02:00 AM

passed my az-120 certification exam today with 90% marks. studied using the dumps highly recommended to all.

A
Ananya
9/14/2023 5:17:00 AM

i need it, plz make it available

J
JM
12/19/2023 2:41:00 PM

q47: intrusion prevention system is the correct answer, not patch management. by definition, there are no patches available for a zero-day vulnerability. the way to prevent an attacker from exploiting a zero-day vulnerability is to use an ips.

R
Ronke
8/18/2023 10:39:00 AM

this is simple but tiugh as well

C
CesarPA
7/12/2023 10:36:00 PM

questão 4, segundo meu compilador local e o site https://www.jdoodle.com/online-java-compiler/, a resposta correta é "c" !

J
Jeya
9/13/2023 7:50:00 AM

its very useful

T
Tracy
10/24/2023 6:28:00 AM

i mastered my skills and aced the comptia 220-1102 exam with a score of 920/1000. i give the credit to for my success.

J
James
8/17/2023 4:33:00 PM

real questions

A
Aderonke
10/23/2023 1:07:00 PM

very helpful assessments

S
Simmi
8/24/2023 7:25:00 AM

hi there, i would like to get dumps for this exam

J
johnson
10/24/2023 5:47:00 AM

i studied for the microsoft azure az-204 exam through it has 100% real questions available for practice along with various mock tests. i scored 900/1000.

M
Manas
9/9/2023 1:48:00 AM

please upload 1z0-1072-23 exam dups

S
SB
9/12/2023 5:15:00 AM

i was hoping if you could please share the pdf as i’m currently preparing to give the exam.

J
Jagjit
8/26/2023 5:01:00 PM

i am looking for oracle 1z0-116 exam

S
S Mallik
11/27/2023 12:32:00 AM

where we can get the answer to the questions

P
PiPi Li
12/12/2023 8:32:00 PM

nice questions

D
Dan
8/10/2023 4:19:00 PM

question 129 is completely wrong.

G
gayathiri
7/6/2023 12:10:00 AM

i need dump

D
Deb
8/15/2023 8:28:00 PM

love the site.

AI Tutor 👋 I’m here to help!