CFA Institute
CODE: CFA-Level-I
Exam Name: CFA Level I Chartered Financial Analyst
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Type Demo
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, Question: 1
Stripe Green is an equity analyst who is offered a freelance project to write a research report by Square
Bus. Which of the following is the correct choice for Stripe with regards to compensation?
A. Accept a fee that pays him higher if gives a buy recommendation to Square Bus.
B. Accept a flat fee that is not based on whether he recommends Square Bus or not in the research
report.
C. Accept a fee that pays him proportional to the number of equity Square Bus sells while using the
report for advertising.
Answer: B
Question: 2
Which of the following is false for GIPS composites?
A. Composites are defined based on a common investment objective or strategy.
B. Nondiscretionary accounts must all be in the same composite.
C. Actual, fee-paying, discretionary portfolios must be included in at least one composite.
Answer: B
Question: 3
PS Partners, a money management firm, uses different brokers for it trading. Most brokerage work is
given to NP Ltd. The commissions charged by NP are higher than many other competitors, nor is its
execution any better. NP pays for over half of PS's advertising expenses.
A. PS has violated Standard III (A) Loyalty, Prudence, and Care by not obtaining the best brokerage for
their clients.
B. PS has violated Standard III (B) Fair Dealing by not obtaining the best brokerage for their clients.
C. PS has violated Standard III (C) Suitability by not obtaining the best brokerage for their clients.
Answer: A
http://www.cert4prep.com/CFA-Level-I.html Page 2
CODE: CFA-Level-I
Exam Name: CFA Level I Chartered Financial Analyst
Click the link below to buy full version as Low as $39
http://www.cert4prep.com/CFA-Level-I.html
Type Demo
http://www.cert4prep.com/CFA-Level-I.html Page 1
, Question: 1
Stripe Green is an equity analyst who is offered a freelance project to write a research report by Square
Bus. Which of the following is the correct choice for Stripe with regards to compensation?
A. Accept a fee that pays him higher if gives a buy recommendation to Square Bus.
B. Accept a flat fee that is not based on whether he recommends Square Bus or not in the research
report.
C. Accept a fee that pays him proportional to the number of equity Square Bus sells while using the
report for advertising.
Answer: B
Question: 2
Which of the following is false for GIPS composites?
A. Composites are defined based on a common investment objective or strategy.
B. Nondiscretionary accounts must all be in the same composite.
C. Actual, fee-paying, discretionary portfolios must be included in at least one composite.
Answer: B
Question: 3
PS Partners, a money management firm, uses different brokers for it trading. Most brokerage work is
given to NP Ltd. The commissions charged by NP are higher than many other competitors, nor is its
execution any better. NP pays for over half of PS's advertising expenses.
A. PS has violated Standard III (A) Loyalty, Prudence, and Care by not obtaining the best brokerage for
their clients.
B. PS has violated Standard III (B) Fair Dealing by not obtaining the best brokerage for their clients.
C. PS has violated Standard III (C) Suitability by not obtaining the best brokerage for their clients.
Answer: A
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