Chartered Financial Analyst®
2011 CFA Level 1 Test Exam Concerns and Answers
• 2011 CFA Level 1 Test Exam Version 1-2
2011 CFA Level 1 Test Exam
2011 Level one particular Sample Test Volume you
SS1 -Ethics and Professional Standards 1 ) Abasi Hasina, CFA, signed an employment deal with a non-compete clause restricting him via working for a competitor for 3 years after leaving company, an investment bank. After one year, Hsaina. quits his purpose of a position with an investment lender in a metropolis across the country. The brand new job will pay twice as much as the old one. Attorneys with which he consulted determined the non-compete clause was a breach of man rights and thus illegal, thus he had taken the present. Did Hssina most likely disobey the CFA Insitute Code of Ethics? A. Yes B. Not any, the non-compete clause was considered unlawful. C. No, the non-compete clause is definitely void because the new situation is geographically distant. 2 . Benefits of compliance with the CFA Institute Global Investment Performance Standards(GIPSa) least likely incorporate: A. conditioning of interior controls. W. Participation in competitive putting in a bid. C. Eradication of in-depth due diligence to get investors. several. Who is probably responsible for proclaiming and maintaining compliance with CFA Commence Global Investment Performance Requirements (GIPSb)? A. An independent other B. The firm proclaiming compliance C. The risk management department some. Mariam Nspiracion, CFA, Head of Conformity at Dunfield Brokers, queries her friend Omar Kassim, a CFA Candidate and a research expert, about his purchase of stocks and shares in a firm for his own consideration immediately ahead of he published a " buy". recommendation. He defends his activities by saying he has done nothing incorrect because Dunfield doesn't have virtually any personal trading policies set up. The CFA Institute Code of Integrity and Criteria of Specialist Conduct had been most likely violated by: A. only Musa. B. just Kassim C. both Letras and Kassim. 5. Zhao Xuan, CFA, is a sell off side expenditure analyst. While at a software industry
2011 CFA Level one particular Sample Examination
conference, Xuan heras rumours that Green Run Software may include falsified their financial results, When the lady returns to her office, Xuan conducts an intensive analysis of Green Run. Based on her research, which includes discussions with some of Greeri Gun's consumers, Xuan is convinced that Green Run's reported fifty percent increase in net gain in recent sectors is completely fictitious. So far, yet , Xuan may be the only analyst that is shady about you�re able to send reported making. According to the CFA Institute Code of Values and Requirements of Specialist Conduct, the very least appropriated action for Xuan is to: A. report her suspicions to Green Run's management. B. do nothing, until her evaluation is maintained other analysts. C. Advise that her consumers sell their very own Green Work shares instantly. 6. Rich Cardinal, CFA, is the president of Volcano Capital Research(VCR), an investment administration firm whose sole activity is short selling. Capital seeks away companies in whose stocks experienced large value increases. Capital also pays several Buenos aires lobbying firms to update him right away on virtually any legislative or perhaps regulatory changes that may influence his goal companies. Cardinal sells short those concentrate on companies that he estimations are nearby the peak of their sales and earnings which his Washington sources identify as facing legal Or perhaps regulatory issues. Immediately after he sells a stock, Cardinal conducts a advertising campaign to disclose all of the adverse information this individual has collected on the business, even if the information is not public, Cardinal then promotes shareholders to file widely published shareholder class-action lawsuits that seej^ damage because the stock dropped in price. Which of Cardinal's subsequent actions is least likely to be in breach of the CFA Institute Criteria Professional Execute? A. Offering stock short B. Trading on info from...