Schweser Printable Tests - Level 1 - EXAM 1 Morning - Free

Schweser Printable Tests - Level 1 - EXAM 1 Morning - 180 minutes - Level 1
- EXAM 1 Morning You can print this page by going to file -> print in your internet browser. [pic] Ethics - 18 Questions - 27 minutes [pic]
Question: 1 - 23379
Based on AIMR's Standards of Professional Conduct, which of the following
statements are a violation of Standard IV(B.6), Prohibition against
Misrepresentation?
|A)|A young trainee bond trader tells a prospective client |
| |that she can assist the client in all the client's |
| |investment needs: equity, fixed income, and derivatives |
| |and based on her years of experience as an analyst in the|
| |business that an investment looks like it has lots of |
| |potential. |
|B)|All of these. |
|C)|An investment manager recommends to a prospective client,|
| |an investment in mortgage IO strips because they are |
| |guaranteed by an agency of the federal government. |
|D)|A broker says XYZ stock is 100% guaranteed to double in |
| |value over the next six months. |
[pic]
Question: 2 - 28161
According to AIMR's Standards of Professional Conduct Standard I(B),
Fundamental Responsibilities, members shall not knowingly participate or
assist in legal and ethical violations. An analyst:
|A)|must report all legal violations to the proper regulatory|
| |commission and is held responsible for participating in |
| |illegal acts when the law is evident to anyone knowing |
| |the law. |
|B)|is held responsible for violations by others when the |
| |analyst is unaware of the facts giving rise to the |
| |violation. |
|C)|is held responsible for participating in illegal acts |
| |when the law is evident to anyone knowing the law and can|
| |participate in a violation by having knowledge of the |
| |violation and taking no action to stop it or disassociate|
| |from it. |
|D)|is held responsible for participating in illegal acts |
| |when the law is evident to anyone knowing the law and is |
| |held responsible for violations by others when the |
| |analyst is unaware of the facts giving rise to the |
| |violation. |
[pic]
Question: 3 - 28162
Which of the following is a violation based on AIMR's Standard's of
Professional Conduct?
|A)|A portfolio manager accepts free trades from XYZ for her |
| |personal account for directing the portfolio's trades to |
| |XYZ. She does not inform her manager since there is no |
| |cash involved. |
|B)|After informing his manager, a portfolio manager accepts |
| |money for giving a broker information relating to a |
| |client's financial standing. |
|C)|A portfolio manager is offered a free vacation to |
| |increase performance. At the end of the year performance |
| |is up and the manager accepts the vacation after |
| |informing his manager of the fact. |
|D)|A portfolio manager is unexpectedly offered a vacation at|
| |year-end from a client who was pleased with their |
| |portfolio's performance. The manager accepts the vacation|
| |after informing her manager of the fact. |
[pic]
Question: 4 - 28165
Based on AIMR's Standards of Professional Conduct, which of the following
statements are a violation of Standard IV(B.6), Prohibition against
Misrepresentation?
|A)|A young trainee bond trader tells a prospective client |
| |that she can assist the client in all the client's |
| |investment needs: equity, fixed income, and derivatives |
| |and based on her years of experience as an analyst in the|
| |business that an investment looks like it has lots of |
| |potential. |
|B)|An investment manager recommends to a prospective client,|
| |an investment in mortgage IO strips because they are |
| |guaranteed by an agency of the federal government. |
|C)|A broker says XYZ stock is 100% guaranteed to double in |
| |value over the next six months. |
|D)|All of these. |
[pic]
Question: 5 - 28167
Which one of the following is NOT consistent with AIMR's Performance
Presentation Standards?
|A)|Cash and cash equivalents must be included in composite |
| |returns. |
|B)|All actual, fee paying, discretionary portfolios should |
| |be included in at least one composite. |
|C)|Investment performance is the record of the manager not |
| |the firm, all changes in personnel should be accounted |
| |for by adjusting the composite's performance history. |
|D)|Presentation of performance may be either gross or net of|
| |investment management fees, as long as the method and the|
| |fee schedule are disclosed. |
[pic]
Question: 6 - 28168
Under the Employee Retirement Income Security Act (ERISA), a person is a
fiduciary if he or she:
|A)|has discretionary authority in the administration of the |
| |pension plan; renders investment advice for a fee with |
| |respect to a pension plan's assets; exercises any |
| |discretionary authority with the management of the |
| |pension plan or its assets. |
|B)|has an executive position in the firm sponsoring the |
| |pension plan. |
|C)|has an executive position in the firm sponsoring the |
| |pension plan; has discretionary authority in the |
| |administration of the pension plan. |
|D)|exercises any discretionary authority with the management|
| |of the pension plan or its assets. |
[pic]
Question: 7 - 29219
There are four components of the AIMR?Code of Ethics. All of the following
are part of the Code of Ethics EXCEPT:
|A)|Practice and encourage others to practice in a |
| |professional and ethical manner that will reflect credit |
| |on members and their profession. |
|B)|Strive to maintain and improve the competence of |
| |regulatory bodies such as the Securities and Exchange |
| |Commission (SEC). |
|C)|Strive to maintain and improve the competence of others |
| |in the profession. |
|D)|Use reasonable care and exercise independent professional|
| |judgment. |
[pic]
Question: 8 - 29220
AIMR?believes:
|A)|that a maximum level of professional responsibility and |
| |conduct dictates that members be aware of and comply with|
| |laws, rules, and regulations governing their conduct. |
|B)|companies should set standards based on the ethics of |
| |upper management and the board of directors. |
|C)|that firms should comply with all domestic laws and |
| |regulations and that these laws also govern behavior in |
| |foreign markets, regardless of foreign laws and |
| |requirements. |
|D)|that a minimum level of professional responsibility and |
| |conduct dictates that members be aware of and comply with|
| |laws, rules, and regulations governing their conduct. |
[pic]
Question: 9 - 29221
Which of the following statements about the AIMR?Code and Standards is
TRUE? The Code and Standards:
|A)|require that members report legal violations to the |
| |appropriate governmental or regulatory organization. |
|B)|do not require that members report legal violations to |
| |the appropriate governmental or regulatory organization. |
|C)|expect members to resign from their jobs to disassociate |
| |themselves from clients engaging in illegal activities. |
|D)|expect members to persuade the perpetrator to cease |
| |illegal activities. |
[pic]
Question: 10 - 29222
All of the following are appropriate uses of the CFA designation EXCEPT:
|A)|Jeremy Salyers, CFA. |
|B)|Joanne Silbourne is a CFA charterholder. |
|C)|I, as a CFA charterholder, expect to outperform the |
| |market because CFA charterholders have on average |
| |outperformed the S&P in 95 percent of the last 50 years. |
|D)|I have earned the CFA designation by passing three exams,|
| |having sufficient work experience and becoming a member |
| |of AIMR®. |
[pic]
Question: 11 - 29223
Which of the following would NOT violate AIMR?s rules regarding personal
integrity and behavior?
|A)|A driving under the influence (DUI) conviction that |
| |results in the loss of one's driver's license for six |
| |months. |
|B)|Stealing a car and going to prison for 18 months. |
|C)|A misdemeanor conviction that results from lying about |
| |your income on your tax return. |
|D)|Cheating on an MBA preliminary exam and being expelled |
| |from the University. |
[pic]
Question: 12 - 29224
When must an analyst give credit to the firm? own research staff for
research analysis?
|A)|When sending printed |
| |materials to clients. |
|B)|When discussing research with|
| |a client. |
|C)|In a professional witness |
| |situation. |
|D)|In inter-office |
| |communications. |
[pic]
Question: 13 - 29225
An AIMR memb