CFA Level 1

Review 131 CFA-LEVEL-1 practice questions with answer explanations and community insights.

Question 1

According to the AIMR-PPS, ________ are defined to include all discretionary and nondiscretionary assets.

  1. individually managed assets
  2. individual investor's assets
  3. total firm assets
  4. global assets

Question 2

Standard III (D) deals with ________.

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

Question 3

Another name for "access" person is ________.

  1. none of these answers
  2. supervisor
  3. ombudsman
  4. guardian
  5. fiduciary
  6. covered person

Question 4

Which of the following is/are true about the Performance Presentation Standards? I. A member who complies with the mandatory requirements of the PPS but does not follow the recommended requirements can publicly claim compliance with the PPS. II. The PPS are designed to be primarily a performance measurement framework. III. The Standards are not designed to enhance or detract from the presentation of historical results.

  1. III only
  2. II and III only
  3. I, II and III
  4. I and III only

Question 5

If a firm uses non-discretionary leverage, it must present performance using:

  1. both actual returns and all-cash basis.
  2. all-cash basis i.e. removing leverage effects.
  3. actual returns.
  4. none of these answers.