Standard V (A) is known as ________.
Answer(s): A
Standard IV (A) deals with the Investment Process. Standard III (B) deals with Duty to Employer. Standard IV (B.3) deals with Fair Dealing. Standard IV (B) deals with Interactions with Clients and Prospects. Standard V (A) deals with Prohibition against Use of Material Nonpublic Information. Standard IV (B.5) deals with Preservation of Confidentiality. Standard II (B) deals with Professional Misconduct.
Which of the following is/are true about the Performance Presentation Standards?
Answer(s): C
All of the answers are true of the PPS standards.
Urvashi Kulkarni is an investment manager with Amritrust Bank, a mid-size investment bank. Urvashi is managing the pension plan assets of Megalith ICs, a maker of cloned integrated chips for PCs. Megalith is planning a take-over of Microchip Corp., a fast-growing rival which recently patented a technology which promises to change the face of chip cloning business. The pension plan assets of Megalith consist of 17% of Microchip's stock. Megalith's management has decided to buy up to 33% of the stock in a tender offer and transfer the 17% stock holdings of the pension plan to the company investment account. So it instructs Urvashi to sell the Microchip stock to Megalith's general account at the current market price and invest the cash in other stock as she feels appropriate. Urvashi knows that this action and the subsequent takeover of Microchip will substantially elevate Megalith's stock price, creating shareholder value. Urvashi should
Answer(s): B
Urvashi owes fiduciary loyalty to the plan beneficiaries, not the management of Megalith. She must not sell Microchip's stock prior to the tender offer since in doing so, she will be selling the plan assets at a much lower price than would be available once the tender is floated. While such an action benefits Megalith shareholders, it harms the plan beneficiaries. Urvashi owes absolutely no allegiance to Megalith shareholders. Standard IV (B.1) - Fiduciary Duties - and the Topical Study, "Fiduciary Duties."
Standard III includes which of the following ?
Answer(s): F
Standard III deals with Obligation to Inform Employer of Code and Standards, Duty to Employer, Disclosure of Conflicts to Employer, Disclosure of Additional Compensation Arrangements and Responsibilities of Supervisors.
Andrea, a portfolio manager for XYZ Investment Management Company, a registered investment organization that advises investment companies and private accounts, was promoted to that position three years ago. Bates, her supervisor, is responsible for reviewing Andrea's portfolio account transactions and her required monthly reports of personal stock transactions. Andrea has been using Jonelli, a broker, almost exclusively for portfolio account brokerage transactions. For securities in which Jonelli's firm makes a market, Jonelli has been giving Andrea lower prices for personal purchases and higher prices for personal sales than Jonelli gives to Andrea's portfolio accounts and other investors. Andrea has been filing monthly reports with Bates only for those months in which she has no personal transactions, which is about every fourth month. Which of the following applies/ apply?
Answer(s): G
This question involves three Standards. Andrea, the portfolio manager, has been obtaining lower prices for her personal securities transactions than she gets for her clients, which is a violation of Standard IV (B.1), Fiduciary Duties. In addition, she violated Standard II (B), Professional Misconduct, by failing to adhere to company policy and hiding her personal transactions from her firm. Andrea's supervisor, Bates, violated Standard III (E), Responsibilities of Supervisors, by failing to enforce the procedures for reporting personal trading. Therefore, Statements I, II and III are all correct.
Share your comments for Test Prep CFA-Level-I exam with other users:
thanks for the dump
fantastic assessments
i find the xengine test engine simulator to be more fun than reading from pdf.
nice document
thank you for making the questions and answers intractive and selectable.
answers are correct?
can i belive this dump
great site to practice for sitecore exam
good for students
nice practice dumps
nokia 4a0-114 dumps
great content and wonderful to have the answers with explanation
for question #118, the answer is option c. the screen shot is showing the drop down, but the answer is marked incorrectly please update . thanks for sharing such nice questions.
the correct answer for the question 29 is d.
question no 22: correct answers: bc, 1 per session 1 per page 1 per component always
these are pretty useful
awesome
yes please upload
great job whoever put this together, for the greater good! thanks!
just started to view all questions for the exam
helpful material
hope for the best
will post exam has finished
really correct and good analyze!
excellent thanks a lot
will post once pass the cka exam
good content
q:32 answer has to be option c
nice questions
i really like the support team in this website. they are fast in communication and very helpful.
a good contemporary exam review
q23, its an array, isnt it? starts with [ and end with ]. its an array of objects, not object.
cool very helpfull
i just passed. this exam dumps is the same one from prepaway and examcollection. it has all the real test questions.