CFA Level 1

CFA Level 1 practice questions, page 2 of 6, with answer review and explanations.

Question 6

________ and other hybrid securities must be treated consistently across and within composites.

  1. Portfolios
  2. Convertibles
  3. Assets
  4. Bonds

Question 7

Standard IV (B.8), Disclosure of Referral Fees, includes ________.

  1. referral fees paid in cash
  2. referral fees paid "in kind"
  3. soft dollar referral fees
  4. all of these answers

Question 8

Which of the following relating to compliance procedures for complying with Standard III (E) is false? The compliance procedures should:

  1. none of these answers.
  2. outline permissible conduct.
  3. delineate procedures for reporting violations and sanctions.
  4. designate a team of outside colleagues to form a review board.
  5. outline the scope of the procedures.
  6. be easy to understand.

Question 9

According to the AIMR-PPS for venture and private placements, ________ internal rate of return must be presented since inception of the fund and be net of fees, expenses and carry to the limited partner.

  1. limited
  2. extended
  3. cumulative
  4. general

Question 10

Which of the following AIMR Standards states that referral fees must be disclosed in writing to clients or customers?

  1. V
  2. VI (A)
  3. IV (B.8)
  4. IV