【正文】 Mock Exam 1 (Afternoon Session) (Rev. 1) 1 CFA Level 1 MOCK EXAM 1 Afternoon Session Time Limit: 3 Hours 1. Gee, CFA, a citizen of Germany, is doing business in a neighboring country. According to AIMR Standards of Professional Conduct, which statement applies to Gee 39。s conduct when he is conducting business in the other country? A. He is not bound by any of the regulations because France and the other country have no jurisdiction in each other39。s countries. B. He should adhere to whichever of France39。s, the other country39。s or AIMR39。s rules that impose the highest degree of responsibility. C. He should only adhere to the securities laws of France even though they do not cover some of the provisions found in the laws of the other country that relate to his work. D. He should adhere to the securities laws of the other country even though they are not as stringent as those of France. 2. Charlie, a CFA candidate, got a copy of a puterized stock selection model designed by a former MBA classmate who is a Wall Street analyst. After spending some time reviewing the program and making a few minor adjustments Charlie showed her new model to her supervisor. Her supervisor said she did a great job and told Charlie to incorporate new model in her next industry review, which she did. Charlie has: A. violated Standard IV() Preservation of Confidentiality. B. violated Standard II(C) Prohibition against Plagiarism. C. violated Standard V(A) Prohibition against use of Material Nonpublic Information. D. none of the above. 3. Sheria, CFA, just joined an investment firm and reports directly to Raymond, who heads the department dealing with advisory service to high worth individuals. To fulfill her duty of informing her employer about following AIMR Code of Ethics and Standards of Professional Conduct, Sheria must inform: A. the firm39。s chief executive officer either orally or in writing. B. her direct supervisor orally about AIMR39。s requirements. C. the managing director of the firm in writing about AIMR39。s requirements. D. her direct supervisor in writing about AIMR39。s requirements. Mock Exam 1 (Afternoon Session) (Rev. 1) 2 4. Edison, CFA, supervises a group of research analysts, none of whom are CFA charterholders or CFA candidates. He has attempted on several occasions to get his firm to adopt a pliance system to insure that applicable laws and regulations are followed. The firm39。s principals, however, have never adopted his remendations. According to AIMR Standards of Professional Conduct, Edison at this point should: A. take no action, because the employees are not CFA charterholders or CFA candidates. B. take no action, because he has fulfilled his obligations under AIMR standards. C. redesign the pliance system, because no alternative exists that will keep him in pliance with AIMR standards. D. decline in writing to accept supervisory responsibility until his firm adopts reasonable pliance procedures. 5. Roy, CFA, manages several pension accounts and directs most of his trades through the Wales Investment Limited. Roy does this because he believes that he gets good executions and Wales Investment Limited provides him with excellent research reports used in the management of these accounts. Regional, a small discount brokerage house, has just approached Roy that it will execute his trades at half the cost of Wales. Regional does not have a research department. According to AIMR Standards of Professional Conduct, if Wales does NOT switch his business to Regional, has he violated the loyalty clause in his fiduciary duties? A. No, because he already had an established relationship with Wales before Regional39。s offer. B. No, if he can determine, in good faith, that the higher missions are mensurate with the value of the research services he receives and discloses this practice. C. Yes, because of the prudent expert clause. D. Yes, because Standard IV(), Fiduciary Duties, says he must minimize expenses. 6. Samuel, CFA, closely follows the puter industry. In the course of his research, he discovers that the Stone Limited, a small unknown working pany, has just signed several major contracts. After considerable research, Samuel wrote a strong buy remendation for Stone. Management is likely to take a week to approve his report. In the meantime, which standard covers Samuel 39。s behavior regarding the dissemination of his research? A. Standard IV() Priority of Transactions. B. Standard IV() Preservation of Confidentiality. Mock Exam 1 (Afternoon Session) (Rev. 1) 3 C. Standard V(A) Prohibition against Use of Material NonPublic Information. D. Standard IV() Fair Dealing. 7. Which of the following is a violation of Standard IV(B3), Fair Dealing? A. Placing orders for your firm accounts before issuing a buy remendation. B. Accepting and executing a buy order for a stock that you have recently downgraded from buy to sell without mentioning the fact to the client. C. Having an alert system for your best customers so they can learn about remendation changes before the firm39。s regular customers. D. All of the above. Mock Exam 1 (Afternoon Session) (Rev. 1) 4 8. Doris is a CFA charterholder and the portfolio manager of a technology fund. She maintains a retirement account with a brokerage firm located in a distant city. According to AIMR Standards of Professional Conduct, which of the following actions should Doris take when he identifies a particularly attractive issue that he wants to buy? Doris should acquire shares for her: A. mutual fund and her account at the same time. B. own account before acquiring them for her mutual fund. C. mutual fund before acquiring them for her own account. D. mutual fund but refrain f