QUESTION: 125

Standard III (E) is known as ________.

Prohibition against Use of Material Nonpublic Information
Preservation of Confidentiality
Fair Dealing
Professional Misconduct
Interactions with Clients and Prospects
Investment Process
Duty to Employer
None of these answers

Answer(s): H

Explanation:

Standard III (E) is Responsibilities of Supervisors. Be sure you remember that this standard may often be cited as a violation, along with most other standards (because failure to supervise is often at the root of many of the standard violations).

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QUESTION: 126

According to the AIMR-PPS, total firm assets are defined to include

all discretionary and nondiscretionary assets, as well as assets underlying overlay investment strategies.
all discretionary and nondiscretionary assets.
any asset deemed eligible by the firm.
only assets underlying overlay investments strategies.

Answer(s): B

Explanation:

Total firm assets are defined to include all discretionary and nondiscretionary assets. Total firm assets do not refer to assets underlying overlay investment strategies, such as currency overlay, options and futures overlays, securities lending programs and asset allocation overlay strategies, unless the firm actually manages the underlying assets.

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QUESTION: 127

Standard V (B) addresses any practice that would lead to misrepresentation of a member's record, whether the practice involves performance ________ or performance ________.

presentation; measurement
none of these answers
presentation; benchmarking
assessment; benchmarking
measurement; assessment
assessment; presentation
benchmarking; measurement

Answer(s): A

Explanation:

Standard V (B) addresses any practice that would lead to misrepresentation of a member's record, whether the practice involves performance presentation or performance measurement.

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QUESTION: 128

A(n) ________ is someone who has knowledge of pending or actual investment recommendations or action.

AIMR member
access person
none of these answers
insider

Answer(s): B

Explanation:

Access or covered persons have knowledge of pending or actual investment recommendations or action. The firm's definition of access (covered) person should be broad enough to cover all people with that knowledge.

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Free CFA-Level-I Exam Braindumps (page: 32)

QUESTION: 125

Explanation:

QUESTION: 126

Explanation:

QUESTION: 127

Explanation:

QUESTION: 128

Explanation: