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: 84)

Page 84 of 991
PDF with 3963 Questions

Which of the following is NOT a form of plagiarism as defined by AIMR code of conduct?

  1. Copying proprietary software programs without permission.
  2. Using data from a well-known statistical service without attribution.
  3. Citing specific quotations to "leading analysts," without specific reference.
  4. Using publicized research reports prepared by others without attribution.

Answer(s): B

Explanation:

Standard II(C) - Prohibition against Plagiarism considers a use of factual information published by recognized financial and statistical services without attribution acceptable. All of the others are forms of plagiarism and violations of Standard II(C).



Silverio Arvantis is an aggressive and quick-silver analyst with Foresi Associates, an investment advisory firm. Silverio, a freshly minted Ph.D. from the University of Chicago, recently formulated an algorithm for selecting the portfolio weights in relatively new high-tech stocks. The algorithm evaluates 43 different variables to choose the investments and as such, is fairly complex in nature. Not wishing to drown his clients in esoteric terms like "martingale" and "stochastic transformation," Silverio writes up a short report which touches only briefly on the major characteristics of the model. Instead, he focuses on the performance of the model on past market data, which is absolutely sterling. Based on these tests, Silverio recommends 4 stocks for immediate purchase.
Silverio has:

  1. violated Standard V (B) - Performance Presentation by relying on past data.
  2. not violated any standards.
  3. violated Standard IV (A.2) - Research Reports by failing to disclose sufficient details about the algorithm.
  4. violated Standard IV (A.2) - Research Reports by failing to distinguish opinion from fact.

Answer(s): C

Explanation:

Standard IV (A.2) requires the member to disclose details of the reasoning and logic behind the recommendations so that investors can follow and challenge it and analyze the risks inherent in the recommended strategy. While Silverio does not have to delve into excessive technical details or reveal any proprietary formulas, the report must contain explanations for the recommendations. By omitting these, he has violated Standard IV (A.2). Note, however, that there is no evidence that he has confused opinion with fact.



Parts of the standards that are ________ must be observed.

  1. restraining
  2. mandatory
  3. recommended
  4. suggested
  5. inhibiting

Answer(s): B

Explanation:

Some aspects of the Performance Presentation Standards are mandatory and must be observed, while other aspects are recommended.



Standard III (B) deals with ________.

  1. Use of Professional Designation
  2. Fundamental Responsibilities
  3. Professional Misconduct
  4. Disclosure of Conflicts to Employer
  5. None of these answers
  6. Duty to Employer
  7. Obligation to Inform Employer of Code and Standards
  8. Plagiarism

Answer(s): F

Explanation:

Standard I deals with Fundamental Responsibilities. Standard II (A) deals with Use of Professional Designation.
Standard II (B) deals with Professional Misconduct. Standard II (C) deals with Plagiarism. Standard III (A) deals with the Obligation to Inform Employer of Codes and Standards. Standard III (B) deals with the Duty to Employer. Standard III (C) deals with Disclosure of Conflicts to Employer.






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

CFA-Level-I Exam Discussions & Posts