Examen 1. Etapa 1 Ethics

With respect to ethics and laws, it is most correct that:

The primary reason why ethical conduct is essential in the investment profession is, most correctly, that:

An ethical decision-making framework, most correctly, helps the professional to:

The CFA Institute Code of Ethics requires members, among other things, to:

Which of the following is NOT one of the seven Standards of Professional Conduct?

A CFA member works in a country whose local law is LESS strict than the Code and Standards. Under Standard I(A) Knowledge of the Law, the member must, most correctly:

A CFA member discovers that a colleague is engaging in illegal activity at the firm. Under Standard I(A), the member’s minimum obligation is, most correctly, to:

An analyst is invited by a company under coverage on a luxury, all-expenses-paid trip to visit its facilities. Under Standard I(B) Independence and Objectivity, it is most appropriate to:

A manager tells a prospective client that he ‘guarantees’ a minimum return of 8% per year on an equity fund. Under Standard I(C) Misrepresentation, this:

An analyst combines public information with his own nonmaterial observations (mosaic theory) to conclude that a company will perform poorly, and acts accordingly. Under Standard II(A):

A trader executes fictitious cross trades to artificially inflate the volume and price of a thinly traded stock and attract buyers. Under Standard II(B):

A manager votes most of his clients’ proxies, but not all: he refrains from voting when a cost-benefit analysis indicates that voting would add no value for the client. Under Standard III(A):

A manager receives a limited allocation in an attractive offering. Under Standard III(B) Fair Dealing, she must distribute the shares among the clients for whom it is suitable, most correctly:

Before recommending investments to a client under discretionary management, Standard III(C) Suitability requires the member, most correctly, to:

A competent regulatory authority formally requests confidential client information from a member as part of a legal investigation. Under Standard III(E) Preservation of Confidentiality, the member:

A manager plans to leave his firm to start a competing business. BEFORE leaving, under Standard IV(A) Loyalty, he may, most correctly:

A client offers a manager a luxury vacation if his portfolio outperforms the index this year. Under Standard IV(B) Additional Compensation Arrangements, the manager:

A CFA supervisor detects indications that a subordinate may be violating the Standards. Under Standard IV(C) Responsibilities of Supervisors, he must, most correctly:

The Guidance accompanying each Standard of Conduct is primarily intended to:

Outside of work hours, a CFA member is convicted of fraud that demonstrates dishonesty and affects his professional reputation. Under Standard I(D) Misconduct: