CFA-Level-l Exam Practice Questions Answer.pdf

A. Yes, Duties to Clients
B. No
C. Yes, Communication with Clients And Prospective Clients
Answer: B
Explanation:
Use of small print in marketing materials for disclaimers such as ‘past performance does not guarantee
future returns’ is not a violation of the Standards.
Question: 23
Which of the following is most likely correct?
A. When a block order is partially executed, allocating partially executed orders among the participating
client accounts pro rata on the basis of order size is recommended for compliance with Standard III (B)
Fair Dealing.
B. Trade allocation procedures being disclosed to all clients prior to their retaining the services of a firm
is sufficient for compliance with Standard III (B) Fair Dealing.
C. Trade allocation procedures being disclosed to all clients prior to their retaining the services of a firm
is sufficient for compliance with Standard V (B) Communication With Clients and Prospective Clients.
Answer: A
Explanation:
Disclosure of inequitable allocation procedures is not sufficient for compliance. Also trade allocation
procedures are not related to Standard V (B) Communication With Clients and Prospective Clients.
Question: 24
Ed Yang, CFA submits a written request to employer for permission to do a consulting project for
another firm. The work would be done on weekends. After waiting for 3 months for a reply but not
receiving one, Yang begins work on the consulting project. Has Yang violated the Standards?
A. No
B. No, if the consulting work is not for a competitor of his employer.
C. Yes
Answer: C
http://www.cert4prep.com/CFA-Level-I.html Page 10