CFA LEVEL 1 MOCK EXAM (A) ACTUAL
EXAM 2026 COMPLETE WITH 60
QUESTIONS AND VERIFIED CORRECT
ANSWERS WITH PERFECT EXPLANATIONS|
ALREADY GRADED A+ | GUARANTEED
PASS | CFA LEVEL 1 LATEST EXAM 2026
[BRAND NEW]
Adira Badawi, CFA, who owns a research and consulting company, is an
independent board member of a leading cement manufacturer in a small local
market. Because of Badawi's expertise in the cement industry, a foreign cement
manufacturer looking to enter the local market has hired him to undertake a
feasibility study. Under what circumstances can Badawi most likely undertake the
assignment without violating the CFA Institute Code of Ethics and Standards of
Professional Conduct? If he:
A. makes full disclosure to both companies.
B. receives written permission from the local company.
C. signs confidentiality agreements with both companies. - CORRECT ANSWER
✔✔- A is correct
because making full and fair disclosure of all matters that could reasonably be
expected to impair one's independence and objectivity or interfere with
respective duties to one's clients is required by Standard VI(A)-Disclosure of
Conflicts of the CFA Institute Code of Ethics and Standards of Professional
Conduct.
Pg. 1
,Anna Saar, CFA, is the head of compliance for Tranne Advisory Services, a regional
financial services group including asset management, investment banking, and
stock brokerage entities. Reviewing a draft client investment management
agreement for the asset management unit, she is concerned that the
relationships between the firm's various business units are not properly disclosed.
To prevent violating CFA Institute Standard VI(A)-Disclosure of Conflicts, which of
the following should least likely be addressed in the investment management
agreement?
A. The group subsidizes staff loans for share purchases.
B. Management fees are frequently loss leaders for brokerage.
C. Asset managers are likely to support corporate finance deals. - CORRECT
ANSWER ✔✔- A is correct
because the group subsidizing staff loans for the purchase of shares is not a
conflict of interest for clients because it is a funding mechanism and does not
interfere with objectivity when rendering investment advice or taking investment
action. However, asset managers subsidizing their asset management fees and
supporting the investment banking corporate finance deals should be disclosed
per Standard VI(A)-Conflicts of Interest and Standard VI(B)-Priority of
Transactions, respectively.
Joanne Bryce recently received notification she had successfully completed the
Level III CFA exam. Having met all the necessary requirements, Bryce would soon
be awarded her charter. Bryce's employer wanted to recognize her
accomplishment and placed an ad in the local newspaper. Which of the following
statements would least likely comply with the CFA Institute Standards of
Professional Conduct?
A. The CFA charter is a key asset in the development of her investment career.
B. By becoming a charterholder, she has significantly improved her standing
within the firm.
C. Ms. Bryce passed all three levels of the exam consecutively, placing her in an
elite group. - CORRECT ANSWER ✔✔- C is correct.
Pg. 2
, The ad should not include the statement, "Ms. Bryce passed all three levels of
the exam consecutively, placing her in an elite group." CFA Standard VII(B):
References to CFA Institute, the CFA Designation, and the CFA Programs states,
"When referring to CFA Institute, CFA Institute membership, the CFA
designation, or candidacy in the CFA Program, Members and Candidates must
not misrepresent or exaggerate the meaning or implications of membership in
CFA Institute, holding the CFA designation, or candidacy in the CFA Program."
CFA charterholders are those individuals who have earned the right to use the
CFA designation granted by CFA Institute. These individuals have satisfied
certain requirements, including completion of the CFA Program and the
required years of acceptable work experience. It would not have been a
violation to simply state that Ms. Bryce had consecutively passed all three levels
of the exam; it would simply be a statement of fact. Adding that it places her in
an elite group is an exaggeration of her accomplishment and could be viewed as
misleading.
When first becoming compliant with the GIPS® standards, an investment firm
with 12 years of investment performance history must initially present a
minimum of:
A. 10 years of annual investment performance.
B. 5 years of annual investment performance.
C. 12 years of annual investment performance. - CORRECT ANSWER ✔✔- B is
correct.
A firm is required to INITIALLY present, at a minimum, five years of annual
investment performance that is compliant with the GIPS standards. Firms are
then required to build up to a 10-year record.
Soujit Ghosh, CFA, observes a price difference in a security that trades in two
different markets. Ghosh concludes the price difference is because of time delay
in factoring material information disseminated by the company. Ghosh
immediately buys large quantities of the security in one market and creates a
Pg. 3
EXAM 2026 COMPLETE WITH 60
QUESTIONS AND VERIFIED CORRECT
ANSWERS WITH PERFECT EXPLANATIONS|
ALREADY GRADED A+ | GUARANTEED
PASS | CFA LEVEL 1 LATEST EXAM 2026
[BRAND NEW]
Adira Badawi, CFA, who owns a research and consulting company, is an
independent board member of a leading cement manufacturer in a small local
market. Because of Badawi's expertise in the cement industry, a foreign cement
manufacturer looking to enter the local market has hired him to undertake a
feasibility study. Under what circumstances can Badawi most likely undertake the
assignment without violating the CFA Institute Code of Ethics and Standards of
Professional Conduct? If he:
A. makes full disclosure to both companies.
B. receives written permission from the local company.
C. signs confidentiality agreements with both companies. - CORRECT ANSWER
✔✔- A is correct
because making full and fair disclosure of all matters that could reasonably be
expected to impair one's independence and objectivity or interfere with
respective duties to one's clients is required by Standard VI(A)-Disclosure of
Conflicts of the CFA Institute Code of Ethics and Standards of Professional
Conduct.
Pg. 1
,Anna Saar, CFA, is the head of compliance for Tranne Advisory Services, a regional
financial services group including asset management, investment banking, and
stock brokerage entities. Reviewing a draft client investment management
agreement for the asset management unit, she is concerned that the
relationships between the firm's various business units are not properly disclosed.
To prevent violating CFA Institute Standard VI(A)-Disclosure of Conflicts, which of
the following should least likely be addressed in the investment management
agreement?
A. The group subsidizes staff loans for share purchases.
B. Management fees are frequently loss leaders for brokerage.
C. Asset managers are likely to support corporate finance deals. - CORRECT
ANSWER ✔✔- A is correct
because the group subsidizing staff loans for the purchase of shares is not a
conflict of interest for clients because it is a funding mechanism and does not
interfere with objectivity when rendering investment advice or taking investment
action. However, asset managers subsidizing their asset management fees and
supporting the investment banking corporate finance deals should be disclosed
per Standard VI(A)-Conflicts of Interest and Standard VI(B)-Priority of
Transactions, respectively.
Joanne Bryce recently received notification she had successfully completed the
Level III CFA exam. Having met all the necessary requirements, Bryce would soon
be awarded her charter. Bryce's employer wanted to recognize her
accomplishment and placed an ad in the local newspaper. Which of the following
statements would least likely comply with the CFA Institute Standards of
Professional Conduct?
A. The CFA charter is a key asset in the development of her investment career.
B. By becoming a charterholder, she has significantly improved her standing
within the firm.
C. Ms. Bryce passed all three levels of the exam consecutively, placing her in an
elite group. - CORRECT ANSWER ✔✔- C is correct.
Pg. 2
, The ad should not include the statement, "Ms. Bryce passed all three levels of
the exam consecutively, placing her in an elite group." CFA Standard VII(B):
References to CFA Institute, the CFA Designation, and the CFA Programs states,
"When referring to CFA Institute, CFA Institute membership, the CFA
designation, or candidacy in the CFA Program, Members and Candidates must
not misrepresent or exaggerate the meaning or implications of membership in
CFA Institute, holding the CFA designation, or candidacy in the CFA Program."
CFA charterholders are those individuals who have earned the right to use the
CFA designation granted by CFA Institute. These individuals have satisfied
certain requirements, including completion of the CFA Program and the
required years of acceptable work experience. It would not have been a
violation to simply state that Ms. Bryce had consecutively passed all three levels
of the exam; it would simply be a statement of fact. Adding that it places her in
an elite group is an exaggeration of her accomplishment and could be viewed as
misleading.
When first becoming compliant with the GIPS® standards, an investment firm
with 12 years of investment performance history must initially present a
minimum of:
A. 10 years of annual investment performance.
B. 5 years of annual investment performance.
C. 12 years of annual investment performance. - CORRECT ANSWER ✔✔- B is
correct.
A firm is required to INITIALLY present, at a minimum, five years of annual
investment performance that is compliant with the GIPS standards. Firms are
then required to build up to a 10-year record.
Soujit Ghosh, CFA, observes a price difference in a security that trades in two
different markets. Ghosh concludes the price difference is because of time delay
in factoring material information disseminated by the company. Ghosh
immediately buys large quantities of the security in one market and creates a
Pg. 3
