CFA Institute CFA-Level-I CFA Level I Chartered Financial Analyst Exam Practice Test

Complete the following: According to The Code of Ethics, members of AIMR shall: "Act with ________, competence, dignity and in an ethical manner when dealing with the public, clients, prospects, employers, employees and fellow members."

Which of the following relating to compliance procedures for complying with Standard III (E) is false? The compliance procedures should:

According to the AIMR-PPS for venture and private placements, ________ internal rate of return must be presented since inception of the fund and be net of fees, expenses and carry to the limited partner.

Trust Fund is a reasonably successful investment management firm that has as its clients a few pension plans. Trust Fund executes all of its trades with Prime Brokerage, an average brokerage firm. Prime Brokerage charges higher commissions than comparable players in the market but in return, provides investment research on the stocks which are part of the pension plan assets under Trust Fund's management. Portfolio managers at Trust Fund know about the close relationship on the golf links between Prime Brokerage's chief broker, Ralph Fiennes, and Trust Fund's CEO, Armis Arvanitis. They also believe that the research provided by Prime Brokerage, while not superlative, is quite useful and justifies the excess expense in brokerage. This "soft-dollars" practice is disclosed in Trust Fund's official documents and contracts but Sisko, a freshly minted CFA charterholder, thinks that Trust Fund managers are in violation of the AIMR code of Ethics. Which of the following is true?

Under what conditions is Standard II (B)- Professional Misconduct violated?

I . The member is convicted of a misdemeanor.

II . The member regularly engages in unprofessional but legal behavior.

III . The member engages in dishonest activities that do not result in criminal conviction. IV . The member is convicted of a felony.

With regard to real estate, all properties must be included in at least one ________.

Standard IV (B.8), Disclosure of Referral Fees, includes ________.