Missed Questions - Mock 1 Comprehensive Examination 2022- 2023 Missed questions Mock 1

Missed Questions -
Mock 1
Comprehensive
Examination 2022-
2023
Missed questions
Mock 1
Q. Examples of the beneficial features of using an ethical
decision-making framework least likely includes analyzing:
A. the best course of action when alternatives are available.
B. the decision maker's perspective of contemplated actions.
C. a broader picture from a long-term point of view.
B
Q. Disclosure of confidential CFA exam information will most
likely be detected by the Professional Conduct staff through:
A. monitoring online and social media.
B. analysis of Proctor Reports.
C. annual Professional Conduct Statements.
A
Q. Which CFA Institute Standard of Professional Conduct most
likely includes a sub-section entitled "Communication with
Clients and Prospective Clients"?
A. Investment Analysis, Recommendations, and Actions
B. Conflicts of Interest
C. Duties to Clients
A
Chan Liu, CFA, is the new research manager at the Pacific
MicroCap Fund. Liu observed the following activities after she
published a research report on a thinly traded micro cap stock
that included a "buy" recommendation: - Pacific traders
purchased the stock for Pacific's proprietary account and then
purchased the same stock for all client accounts; and · Pacific
marketing department employees disseminated positive, but
false, information about this stock in widely read Internet
forums. Q. Liu notes the stock's price increased more than 50%
within a period of two then sold Pacific's account. Which of the
following steps is most appropriate for Liu to take to avoid
violating the CFA Institute Code of Ethics and Standards of
Professional Conduct?
A. Report the observed activities to her employer.
B. Remove her name from the micro cap stock research report.
C. Publicly refute the false information posted on Internet
forums.
А
Q. Ri Lin, CFA, is a Portfolio Manager with Dynasty Investment
Management. Lin is performing research on Titan Mining for
potential inclusion in his fund. Management at Titan is
interested in having a well-known fund manager such as Lin as
a shareholder. Titan pays for Lin to fly to a company retreat in
Tokyo, where a brief introductory meeting is followed by
attending a sporting event and then dinner at one of the city's
top restaurants. Lin participates after disclosing the activities to
Dynasty's compliance department. Which standard did Lin's
actions most likely violate? A. Disclosures of Conflicts B.
Independence and Objectivity C. Diligence and Reasonable
Basis
B is correct because Lin is placing himself in a situation where
his objectivity or appearance of objectivity may be
compromised, which is a violation of Standard I(B). It would
have been more advisable for Lin to decline having Titan pay for
this trip.
Q. Jean-Luc Schlumberger, CFA, is an independent research
analyst providing equity research on companies listed on
exchanges in emerging markets. He often incorporates
statistical data he obtains from the web sites of the World Bank
and the central banks of various countries into the body of his
research reports. While not indicated within the reports,
whenever his clients ask where he gets his information he
informs them the information is in the public domain but he
doesn't keep his own records. When the clients ask for the
specific web site addresses he provides the information. Which
Standard has Schlumberger least likely violated? A. Record
Retention B. Misrepresentation C. Performance Presentation
C is correct because Standard III(D)-Performance Presentation
pertains to investment performance information, and there is
no indication any violation has occurred.
Q. Maria Martinez is a research analyst and a Level II CFA
candidate. Recently, friends of Martinez organized a party for
her thirtieth birthday. At the party, Martinez received an
inexpensive gift from a friend who is the CEO of a publicly listed
company Martinez recommends to clients. Martinez also
received gifts from some of the firm's best clients. Aware of her
employer's policy requiring her to report all gifts received
within one week of receipt, Martinez declares the gifts she