CFA Level 1

CFA Level 1 practice questions, page 4 of 6, with answer review and explanations.

Question 16

For ________ of five or fewer portfolios, the disclosure "five or fewer portfolios" may be made rather than a disclosure of the exact number of portfolios.

  1. returns
  2. investments
  3. segments
  4. composites

Question 17

Standard I deals with ________.

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

Question 18

According to the AIMR-PPS, terminated portfolios are included in the composite for how long after termination?

  1. Composites must include terminated portfolios after the last full performance measurement period the portfolios were under management.
  2. Composites should include the terminated portfolio only until the date of termination.
  3. Composites should include the terminated portfolio for the last full performance measurement period under which the portfolios were managed.
  4. Composites should include the terminated portfolio for the full ten years required by the Standards for performance reporting.

Question 19

Edward Witten works for Princeton Investments and has registered to take Level III exam next year. He had taken the Level III exam 3 years ago but was not successful. In his firm's promotional material, he has stated that he is a candidate in the CFA program and has successfully passed Level II. Edward has:

  1. violated Standard II (A) - Use of Professional Designation. He cannot claim to be in the CFA program without having completed Level III exam.
  2. violated Standard II (A) - Use of Professional Designation. He cannot claim to be in the CFA program since he failed the Level III exam.
  3. not violated any standards.
  4. violated Standard II (A) - Use of Professional Designation. He cannot claim to be CFA - Level II.

Question 20

Standard V (A) deals with ________.

  1. Prohibition against Use of Material Nonpublic Information
  2. Disclosure of Conflicts to Clients and Prospects
  3. Prohibition against Misrepresentation
  4. Disclosure of Referral Fees
  5. Performance Presentation
  6. Priority of Transactions
  7. Preservation of Confidentiality A