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 Test Prep CFA® LEVEL 1 exam with other users:
very useful
yes need this exam dumps
these questions are a great eye opener
thank you for providing these questions and answers. they helped me pass my exam. you guys are great.
good knowledge
answer 10 should be a because only a new project will be created & the organization is the same.
can you please upload the dump again
is it legit questions from sap certifications ?
question 16 should be b (changing the connector settings on the monitor) pc and monitor were powered on. the lights on the pc are on indicating power. the monitor is showing an error text indicating that it is receiving power too. this is a clear sign of having the wrong input selected on the monitor. thus, the "connector setting" needs to be switched from hdmi to display port on the monitor so it receives the signal from the pc, or the other way around (display port to hdmi).
q 10. ans is d (in the target org: open deployment settings, click edit next to the source org. select allow inbound changes and save
i purchased this exam dumps from another website with way more questions but they were all invalid and outdate. this exam dumps was right to the point and all from recent exam. it was a hard pass.
it was a good experience and i got 90% in the 200-901 exam.
hi please upload this
please upload it
really need this dump. can you please help.
really good and covers many areas explaining the answer.
yes, can you please upload the exam?
how many questions are there in these dumps?
hi team, please upload this , i need it.
question 14 - run terraform import: this is the recommended best practice for bringing manually created or destroyed resources under terraform management. you use terraform import to associate an existing resource with a terraform resource configuration. this ensures that terraform is aware of the resource, and you can subsequently manage it with terraform.
please upload dump. thanks in advance.
great great
answer 16 should be b your organizational policies require you to use virtual machines directly
the question are kind of tricky of you didnt get the hnag on it.
can anyone tell me if this is for rhel8 or rhel9?
good content
pdb and cdb are critical to the database
till 104 questions are free, lets see how it helps me in my exam today.
question # 56, answer is true not false.
i would be requiring dumps to prepare for certification exam
very helpful
control file is the heart of rman backup
hi could you please upload the ibm c2090-543 dumps