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: 89)

Page 89 of 991
PDF with 3963 Questions

Performance results for a portfolio need to be presented with cash, ________ equivalents, or substitute assets.

  1. multiple
  2. composite
  3. average
  4. cash

Answer(s): D

Explanation:

Returns from cash and cash equivalents held in portfolios must be included in return calculations and the cash and cash equivalents must be included in the portfolio amount (total assets) on which the return is calculated.



Anamese Barrytone is a broker with Caledonia Investments. Caledonia also provides investment recommendations through its weekly letter. In its last letter released 3 days ago, Caledonia changed its investment recommendation on Sell-Me-Now, Inc. from "hold" to "sell." Anamese has just received a call from Sloan who wants to place a market-buy order on 600 shares of Sell-Me-Now. Anamese should

  1. not execute the order since her firm has placed the stock on the sell list.
  2. inform her supervisor about the order and then decide if the order should be executed.
  3. execute the order as is without trying to change Sloan's mind by telling him about Caledonia's recommendation since she is required to be a neutral broker by SEC rules.
  4. inform Sloan about the change in Caledonia's recommendation before executing the order.

Answer(s): D

Explanation:

According to the SEC rules, if a person places an order contrary to current firm recommendation, he or she should first be informed about the firm's position before accepting the order. Standard IV (B.3) - Fair Dealing.



Standard IV (B.4), Priority of Transactions, suggests implementing "________" in certain organizations to limit the number of access persons.

  1. Gag Orders
  2. Limit Orders
  3. Poison Pills
  4. Token Confines
  5. Fences
  6. Fire Walls
  7. Corrals

Answer(s): F

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.
Implementing "Fire Walls' - physical and procedural barriers to prevent the flow of information from one group to another - may be appropriate in certain organizations to limit the number of persons with such access.



The performance benchmark for a currency overlay portfolio must be calculated in accordance with the portfolio's mandates, unless the benchmark is the ________ on a published benchmark.

  1. tax return
  2. cross hedge
  3. currency return
  4. mean value
  5. standard deviation

Answer(s): C

Explanation:

Two portfolios with the same benchmark may give different mandates to the overlay portfolio managers. For example, when the mandate is based on the underlying assets, the return of the overlay performance benchmark will be different unless the underlying assets of two portfolios imply identical currency exposures.
Consequently, the performance benchmark for a currency overlay portfolio must be calculated in accordance with the portfolio's mandates, unless the benchmark is the currency return on a published benchmark.






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

CFA-Level-I Exam Discussions & Posts