Financial Institute CFA Level I Chartered Analyst® CFA Level 1 Exam Questions in PDF

Free Financial CFA Level 1 Dumps Questions (page: 33)

Joan, an investment counselor, states in her firm's written promotional material that she is a CFA candidate. She has indeed enrolled in the program, but failed Level I five years ago, has not taken any exams since and is not enrolled in the next exam. Which of the following statements is correct?

  1. Joan is in compliance with the correct use of the CFA designation because she states she is a candidate.
  2. Joan is not in compliance with the correct use of the CFA designation. To be in compliance she must state she is a Level I candidate.
  3. None of these answers.
  4. Joan is not in compliance with the correct use of the CFA designation. Because she is not registered for the next exam, she is not a candidate.

Answer(s): D

Explanation:

Under Standard II (A) - Use of Professional Designation, a person must be registered to take the next scheduled CFA exam to be a "candidate" in the CFA Program. Therefore, because Joan is not scheduled to take the next exam, she is not a candidate. There is no designation for someone who has passed Level I, II, or III. However, candidates may state that they have completed Level I, II, or III, as the case may be.



Standard V (A), Prohibition against Use of Material Nonpublic Information applies to

  1. all members of the investment community.
  2. recipients of information who are not directly or indirectly associated with the firm the material nonpublic information is about.
  3. recipients of information who are directly or indirectly associated with the firm the material nonpublic information is about.
  4. none of these answers.

Answer(s): B

Explanation:

Standard V (A), Prohibition against Use of Material Nonpublic Information applies to recipients of information who are not directly or indirectly associated with the firm the material nonpublic information is about. Such persons include research analysts, portfolio managers, venture capitalists, pension sponsors, investor relations executives, rating agencies, trust officers and others who make or recommend investment decisions.



Which of the following is/are required by AIMR-PPS with regards to calculation of returns?

  1. The return for after-tax composites that hold both taxable and tax-exempt securities should be stated on an equivalent, "pre-tax" basis.
    II. Real Estate must be appraised annually unless client agreements state otherwise.
    III. For commingled fund-of-funds structure, segregated Irrs net of trading expenses must be presented.
  2. I, II and III
  3. III only
  4. I and III only
  5. none of them

Answer(s): D

Explanation:

The return for after-tax composites that hold both taxable and tax-exempt securities should be stated on an "after-tax" basis and should not be "grossed" up. Real Estate investments must be appraised every three years and the valuations reviewed quarterly unless client agreements state otherwise. For separately managed accounts commingled fund-of-funds structure, cumulative Irrs net of trading expenses must be presented.



Which of the following disclosures must a firm make in order to be in compliance with AIMR-PPS?

  1. The effective date of firm compliance.
    II. A measure of the dispersion of individual component portfolio returns around the aggregate composite return.
    III. The existence of a minimum asset size below which portfolios are excluded from the composite.
  2. I, II and III
  3. I and III only
  4. I only
  5. I and II only

Answer(s): A

Explanation:

All of these are mandatory disclosures under AIMR-PPS.



The ultimate responsibility to ensure compliance with code rests with:

  1. every member of the firm.
  2. the CEO of the firm.
  3. all of these answers.
  4. the highest ranking AIMR member of the firm.

Answer(s): D

Explanation:

While every member must always comply with the Code, Standard III (A) stipulates that ensuring compliance with the Code in an organization ultimately is the responsibility of the senior most AIMR member of the firm reporting to a non-member. He must make sure that the firm environment is sympathetic to compliance with the Code.



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8/29/2023 2:59:00 PM

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