You can not select more than 25 topics
Topics must start with a letter or number, can include dashes ('-') and can be up to 35 characters long.
9 lines
9.1 KiB
9 lines
9.1 KiB
id&qtp&qim&qil&qtx&qca&qia&qrm&qnxt&qprv&qalb&subj&wght&pts&flr&ded&layout&qfixed&qptsbyans&flags
|
|
CFA120.001&mcs&0&N&Which of the following statements is NOT part of the Global Investment Performance Standards regarding composite construction?&Composites can include simulated and model portfolios that have been managed for more than one year.&Firm composites must be defined to include portfolios with similar investment objectives/strategies.;All actual fee-paying discretionary portfolios must be included in at least one composite.;Convertible and other hybrid securities must be treated consistently across time and within composites. ;&LOS: Study Session 1-5-e<br>Standard 3.A.8. mentions that composites must include only assets under management and may not link simulated or model portfolios with actual performance.<br>Reference: AIMR, Global Investment Performance Standards, p. 8.&&&a&Class@SS01.1&&&&&1:v&&&N.
|
|
CFA120.002&mcm&0&N&Which of the following information is required to be disclosed if a firm is complying with the Global Investment Performance Standards? <i>Check all that apply</i>&The definition of the firm.;The currency used to present performance.;If settlement-date rather than trade-date accounting is used.;&The performance calculation method used by the firm.;&LOS: Study Session 1-5-e<br>The calculation method used by the firm is part of the recommended disclosures, and is not required by Standard 4. Disclosures.<br>Reference: AIMR, Global Investment Performance Standards, pp. 8-9.&&&a&Class@SS01.0&&&&&1&&&N.
|
|
CFA120.003&mcs&0&N&Which of the following is NOT an item that must be checked as part of the verification procedures according to the Global Investment Performance Standards? &Investment managers' remuneration.&Definition of the firm. ;Composite construction.;Performance measurement calculations.;&LOS: Study Session 1-5-g<br>Checking employee remuneration formula is not part of the verification procedures.<br>Reference: AIMR, Global Investment Performance Standards, pp. 11-14.&&&a&Class@SS01.1&&&&&1:v&&&N.
|
|
CFA120.004&mcs&0&N&Valery de Picarde, CFA, is the director of a major Karamba-owned investment management firm branch in Indopulo. Karamba is known as the world's centre of investment management with securities laws stricter than the AIMR Code and Standards. In Indopulo, an emerging market, the local securities laws and regulations are embryonic. They are very vague regarding the definition of insider trading and have no provision regulating soft-dollars. De Picarde's client is a citizen of Karamba but residing in and doing business in Indopulo. The client chooses the jurisdiction of the laws of Indopulo for his business dealings with de Picarde.<br><br>Which of the following is TRUE when dealing with this client?&As an AIMR member, de Picarde must comply with the AIMR Code and Standards regarding insider trading and soft-dollars as they are stricter than the laws of Indopulo, regardless of the client's choice.&De Picarde should follow the laws of Karamba since they are stricter that the laws of Indopulo.;De Picarde should respect the client's choice, not worry about the laws of Karamba and take full advantage of soft-dollars arrangements as well as insider trading opportunities.;De Picarde does not need to comply with the laws of Karamba since the client is not resident there, and can therefore take full advantage of soft-dollars arrangements but not insider trading opportunities.;&LOS: Study Session 1-3-a<br>The rule of thumb of Standard I (A) of the Code and Standards is that in principle members must comply with the stricter of the applicable laws (in this case Indopulo's laws) and the Code of Standards. <br>Reference: AIMR, Standards of Practice Handbook, 8th edition, pp. 9-16.&&&a&Class@SS01.2&&&&&1:v&&&N.
|
|
CFA120.005&mcs&0&&James Richards, CFA, who is a quantitative analyst at Chelsea Investments, a money management firm, has recently been working on a quantitative risk management model for convertible arbitrage strategy. Richards recently attended an AIMR conference where he learned that High Fidelity, a competing investment advisory firm, is also developing a similar model but approaching it from a different angle. He did not agree with the main assumptions of the High Fidelity model although he admitted that its new angle of analysis is innovative. Upon returning to his office, Richards adopted High Fidelity's quantitative techniques but kept the original assumptions from his model. The results are promising and Jane Seamore, the CEO of Chelsea Investments, is pleased with Richards' research. She appears in public seminars to present the new methodology and to win client mandates. <br><br>Which of the following complies with the AIMR Standards of Professional Conduct?&&Richards must credit High Fidelity for having developed the model.;Seamore must credit Richards every time she appears in public seminars.;Richards may sue Seamore for using his research methodology and results.;Seamore need not credit either High Fidelity or Richards for having developed the model.;&LOS: Study Session 1-3-a<br>Richards is employed by Chelsea Investments, the intellectual property of research work generally belongs to the employer unless specified differently. <br><br><br>Most quantitative techniques are not considered proprietary if the computer programs and the research papers are widely published, unless they are misappropriated.<br><br>This is not an act of plagiarism as stipulated in Standard II(C) since Richards has been developing the model on his own as well. <br>Reference: AIMR, Standards of Practice Handbook, 8th edition, pp. 29-34.&&&a&Class@SS01.0&&&&&1&&&N.
|
|
CFA120.006&mcs&0&N&Catherine Vieira, CFA, has been recently recruited to head the Asian research department in Hong Kong of a Paris-based brokerage firm. The firm employs many analysts spread across different countries in Asia, some of whom are members of AIMR and subject to AIMR's Code of Ethics and Standards of Professional Conduct. Vieira thinks that the firm's compliance procedures need to be upgraded to adequately deal with current global requirements. <br><br>Which is the best course of action for Vieira according to the AIMR Standards of Practice Handbook?&Vieira should seek to improve the compliance procedures before she accepts supervisory responsibility.&Vieira should not delegate supervisory duties until the compliance procedures are upgraded.;Vieira may accept supervisory responsibility and can only delegate it to her subordinates who are AIMR members. ;Vieira may immediately accept supervisory responsibility after notifying her employer she is not happy with the compliance procedures.;&LOS: Study Session 1-3-a<br>If the compliance procedures are inadequate she should not accept responsibility until reasonable procedures are in place. Standard III(E) states that supervisory responsibility remains with the supervisor although the actual supervision duties can be delegated. Members can rely on reasonable procedures to detect and prevent violations to applicable statutes, regulations and provisions of the Code and Standards.<br>Reference: AIMR, Standards of Practice Handbook, 8th edition, pp. 57-64.<br>&&&a&Class@SS01.1&&&&&1:v&&&N.
|
|
CFA120.007&mcs&0&N&Which of the following requirements will NOT help to ensure the establishment of an information barrier (fire wall)?&Limit the number of major institutional clients who regularly receive 'special investment tips' prior to the information being made public.&Monitor carefully the personal trading activities of firm personnel.;Limit the number of people in the firm who have access to material nonpublic ;Place securities on a restricted list when the firm has access to material nonpublic information.;&ion]<br>LOS: Study Session 1-3-a<br>Fire walls are intended to block the dissemination of material nonpublic information. Choice IV. is still dissemination therefore in violation of Standard V(A).<br>Reference: AIMR, Standards of Practice Handbook, 8th edition, pp. 232-235.&&&a&Class@SS01.2&&&&&1:v&&&N.
|
|
CFA120.008&mcs&0&N&William Johnson, CFA, is a stock analyst covering the oil sector. Through his contacts in the oil industry he has accumulated and analyzed several pieces of nonpublic information. Although none of the information is "material," Johnson reached the conclusion that one of the companies he covers has discovered a potentially new oil field and future earnings will probably exceed expectations. <br><br>According to the AIMR Standards of Practice Handbook, Johnson:&is allowed to use the information to make investment recommendations and decisions.&should report the source of the nonpublic information to AIMR.;should urge the oil company to make the information public immediately.;is not allowed to make investment recommendations or take actions based on this information.Seamore need not credit either High Fidelity or Richards for having developed the model.;&LOS: Study Session 1-3-a<br>Johnson does not misappropriate the nonpublic nonmaterial information so he can use his conclusion as the basis of his investment recommendations and actions. This situation is not a violation of Standard V (A) but permissible under the "mosaic" theory.<br>&&&a&Class@SS01.0&&&&&1:v&&&N.
|
|
|