CompTIA
Checkpoint
ISC
HP
Dell
EC-Council
EXIN
Fortinet
ITIL®
Juniper
PMI
Microsoft
VMware
Avaya
Google
Salesforce
Amazon
Palo Alto Networks
Certiport
ISC2
All Vendors
  2. Home
  3. Exams
  4. Test Prep
  5. CFA-Level-I

Free CFA-Level-I Exam Braindumps (page: 67)

Page 66 of 991
PDF with 3963 Questions

________ accounting is suggested for calculating performance.

  1. Trade-date
  2. Performance
  3. Accrual
  4. Longitudinal
  5. Composite

Answer(s): A

Explanation:

Trade-date accounting is recommended when calculating performance, although settlement-date accounting is acceptable if disclosed. Because of the volatility and lengthy settlement periods of some markets, trade-date accounting is strongly recommended for calculating the performance of international portfolios.



Which of the following AIMR Standards states that a financial analyst must consider the suitability of an investment for each client or portfolio before undertaking investment action?

  1. IV (B.2)
  2. III E
  3. none of these answers
  4. III D

Answer(s): A

Explanation:

Standard IV (B.2) - Portfolio Investment Recommendations and Actions states: "Members shall consider the appropriateness and suitability of investment recommendations or actions for each portfolio or client. Members shall not make a recommendation unless they reasonably determine that the recommendation is suitable to the client's financial situation, investment experience and investment objectives."



Performance is the record of the ________.

  1. individual
  2. firm
  3. investment manager
  4. child
  5. person

Answer(s): B

Explanation:

To be in compliance with the PPS, a firm's presentation of performance must comply on a firmwide basis and must consist of 10 years of performance (or records since the date of inception if the firm is younger than 10 years).



John Cochrun is a reputed money manager who is also an AIMR member. John recently discovered that some employees at the firm where he is employed have been engaging in some questionable activity which could very well be construed as insider trading by the SEC. John, however, does not think the activity is egregious enough to be reported to the SEC. In any case, he does not want to be known as "the rat who blew the whistle." By not reporting the criminal activity, John has:

  1. has not violated the AIMR code.
  2. violated the AIMR code, Standard I (B) - Fundamental Responsibilities.
  3. violated the AIMR code, Standard III (C) - Disclosure of Conflicts to the Employer.
  4. violated the AIMR code, Standard III (B) - Duty to the Employer.

Answer(s): A

Explanation:

The AIMR code does not require members to report legal violations to the appropriate authorities, as long as they don't associate themselves with such activities.






Post your Comments and Discuss Test Prep CFA-Level-I exam with other Community members:

CFA-Level-I Exam Discussions & Posts