Test Prep CFA® Level I Chartered Financial Analyst CFA® LEVEL 1 Dumps in PDF

Free Test Prep CFA® LEVEL 1 Real Questions (page: 11)

Willier is the research analyst responsible for following Company X. All the information he has accumulated and documented suggest that the outlook for the firm's new products is poor, so the stock should be rated a weak hold. During lunch, however, Willier overhears a financial analyst from another firm offer opinions that conflict with Willier's forecasts and expectations. Upon returning to his office, Willier releases a strong buy recommendation to the public. Willier:

  1. violated the Standards by failing to distinguish between facts and opinions in his recommendation.
  2. was in full compliance with the Standards.
  3. violated the Standards because he did not have a reasonable and adequate basis for his recommendation.
  4. violated the Standards because he did not seek approval of the change from his firm's compliance department.

Answer(s): C

Explanation:

The question deals with Standard IV (A.1), Reasonable Basis and Representations. Willier's actions in changing the recommendation based on the opinion of another financial analyst is not an adequate basis for the recommendation. This question does not illustrate a violation of the need to distinguish between facts and opinions. Seeking approval from the firm for a change in a recommendation is a matter of policy set by the firm, not by the Standards.



Under AIMR Rules of Procedure for the Proceeding Related to Professional Conduct, membership in AIMR and/or the right to hold and to use the CFA designation may be summarily suspended by AIMR's Designated Officer for the following misconduct:

  1. Conviction for a crime that is defined as a felony or its equivalent.
    II. Indefinite bar from registration under the securities laws (even though reapplication may be made after a specific period of time).
    III. Failure to complete and return a professional conduct statement for each of two successive years.
  2. I only.
  3. I and II only.
  4. IV only.
  5. II only.
  6. III only.
  7. II and III only.
  8. I, II and III.

Answer(s): G

Explanation:

This question relates to AIMR's summary suspension powers as defined in the Bylaws under the Professional Conduct Program. Statements I, II and III describe grounds for summary suspension of membership in AIMR and/or the right to hold and use the CFA designation.



Grey recommends the purchase of a mutual fund that invests solely in long-term U.S. Treasury bonds. He

makes the following statements to his clients:

  1. "The payment of the bond is guaranteed by the U.S. government; therefore, the default risk of the bonds is virtually zero."
    II. "If you invest in the mutual fund, you will earn a 15 percent rate of return each year for the next several years." Did Grey's statements violated AIMR's Code and Standards?
  2. Neither statement violated the Code and Standards.
  3. Statement I and II violated the code and Standards.
  4. Only statement I violated the Code and Standards.
  5. Only statement II violated the Code and Standards.

Answer(s): D

Explanation:

This question deals with Standard IV (B.6), Prohibition against Misrepresentation. Statement I is a factual statement that discloses to clients and prospects accurate information about the terms of the investment instrument. Statement II, which guarantees a specific rate of return, is an opinion stated as a fact and therefore violates Standard IV (B.6).



Standard III (D) is ________.

  1. None of these answers
  2. Disclosure of Additional Compensation Arrangements
  3. Disclosure of Conflicts to Employer
  4. Obligation to Inform Employer of Code and Standards
  5. Duty to Employer
  6. Responsibilities of Supervisors

Answer(s): B

Explanation:

Standard III (A) deals with the Obligation to Inform Employer of Code and Standards. Standard III (B) deals with the Duty to Employer. Standard III (C) deals with Disclosure of Conflicts to Employer. Standard III (D) deals with Disclosure of Additional Compensation Arrangements. Standard III (E) deals with Responsibilities of Supervisors.



Level I verification requires independent attestation that the requirements of the AIMR-PPS have been met on a (n) ________ basis.

  1. international
  2. attainable
  3. nationwide
  4. firmwide

Answer(s): D

Explanation:

This is a requirement under Level I verification procedures.



Share your comments for Test Prep CFA® LEVEL 1 exam with other users:

B
Bhuddhiman
7/20/2023 11:52:00 AM

great course

A
Anuj
1/14/2024 4:07:00 PM

very good question

S
Saravana Kumar TS
12/8/2023 9:49:00 AM

question: 93 which statement is true regarding the result? sales contain 6 columns and values contain 7 columns so c is not right answer.

L
Lue
3/30/2023 11:43:00 PM

highly recommend just passed my exam.

D
DC
1/7/2024 10:17:00 AM

great practice! thanks

A
Anonymus
11/9/2023 5:41:00 AM

anyone who wrote this exam recently?

K
Khalid Javid
11/17/2023 3:46:00 PM

kindly share the dump

N
Na
8/9/2023 8:39:00 AM

could you please upload cfe fraud prevention and deterrence questions? it will be very much helpful.

S
shime
10/23/2023 10:03:00 AM

this is really very very helpful for mcd level 1

V
Vnu
6/3/2023 2:39:00 AM

very helpful!

S
Steve
8/17/2023 2:19:00 PM

question #18s answer should be a, not d. this should be corrected. it should be minvalidityperiod

R
RITEISH
12/24/2023 4:33:00 AM

thanks for the exact solution

S
SB
10/15/2023 7:58:00 AM

need to refer the questions and have to give the exam

M
Mike Derfalem
7/16/2023 7:59:00 PM

i need it right now if it was possible please

I
Isak
7/6/2023 3:21:00 AM

i need it very much please share it in the fastest time.

M
Maria
6/23/2023 11:40:00 AM

correct answer is d for student.java program

N
Nagendra Pedipina
7/12/2023 9:10:00 AM

q:37 c is correct

J
John
9/16/2023 9:37:00 PM

q6 exam topic: terramearth, c: correct answer: copy 1petabyte to encrypted usb device ???

S
SAM
12/4/2023 12:56:00 AM

explained answers

A
Andy
12/26/2023 9:35:00 PM

plan to take theaws certified developer - associate dva-c02 in the next few weeks

S
siva
5/17/2023 12:32:00 AM

very helpfull

M
mouna
9/27/2023 8:53:00 AM

good questions

B
Bhavya
9/12/2023 7:18:00 AM

help to practice csa exam

M
Malik
9/28/2023 1:09:00 PM

nice tip and well documented

R
rodrigo
6/22/2023 7:55:00 AM

i need the exam

D
Dan
6/29/2023 1:53:00 PM

please upload

A
Ale M
11/22/2023 6:38:00 PM

prepping for fsc exam

A
ahmad hassan
9/6/2023 3:26:00 AM

pd1 with great experience

Ž
Žarko
9/5/2023 3:35:00 AM

@t it seems like azure service bus message quesues could be the best solution

S
Shiji
10/15/2023 1:08:00 PM

helpful to check your understanding.

D
Da Costa
8/27/2023 11:43:00 AM

question 128 the answer should be static not auto

B
bot
7/26/2023 6:45:00 PM

more comments here

K
Kaleemullah
12/31/2023 1:35:00 AM

great support to appear for exams

B
Bsmaind
8/20/2023 9:26:00 AM

useful dumps

AI Tutor 👋 I’m here to help!