When formulating an investment policy for a client, which of the following falls under "investor objectives?"
Answer(s): C
Risk tolerance is considered under "investor objectives." Liquidity needs, time horizon, proxy voting and investable funds are considered under "investor constraints."
Standard III (F) is ________.
Answer(s): E
There is no Standard III (F).
An AIMR member who lives in Atlantis, where some laws are stricter than the AIMR Code of Ethics and others are less strict, should follow:
Answer(s): B
A member must always abide by the AIMR code (Standard I), unless the local laws in any given case are stricter, in which case, the stricter standard applies.
In order to comply with Standard IV (B.4), Priority of Transactions, firms should prepare and distribute to firm personnel a code of ethics and compliance procedures. The code and procedures should do all of the following, EXCEPT:
Answer(s): F
The question deals with the compliance procedures under Standard IV (B.4). Personal transactions must be defined to all employees. The number of access persons - those who have knowledge of pending or actual recommendations or action - should be limited, by implementing Fire Walls.
When formulating an investment policy for a client, all of the following fall under "investor constraints," except ________.
The existence of separate beneficiaries is considered under the "client identification" category.
Post your Comments and Discuss Test Prep CFA-Level-I exam prep with other Community members: