CFA-Level-l Exam Practice Questions Answer.pdf

Answer: C
Question: 18
SL Industries has hired MM Analytics owned by Gerry Crawford to publicize the firm. SL pays MM and in
return Crawford sends out spam emails pumping up SL stock. These emails do not disclose the payments
received by MM from SL. Also the emails knowingly overstate profits of SL. Which of the following
standard(s) has Crawford not violated?
A. Standard VI (A) Disclosure of Conflicts
B. Standard III (B) Fair Dealing
C. Standard II (B) Market Manipulation and Standard V (A) Diligence and Reasonable Basis
Question: 19
Answer: B
Carly Shuttle manages money for a client and has over the past five years achieved a return greater than
the benchmark. In appreciation the client gifts Carly an all expenses paid Monaco weekend. Carly
believes that the gift does not create a conflict of interest and does not disclose the gift to her
supervisor.
A. Carly has not violated the Standards.
B. Carly has violated Standard I (B) Independence and Objectivity.
C. Carly has not violated Standards I (B) Independence and Objectivity if after using her judgment she
feels the gift did not compromise her independence.Needs to disclose gift to employer
Question: 20
Answer: B
Rajat Sharma, CFA achieved superior returns as a portfolio manager when he . was KJI Advisors. After
leaving KJI, Sharma joined AER Ltd. In a presentation to AER clients, Sharma uses the returns he
achieved at KJI, without clarifying that the returns were obtainedduring his employment at KiT. Has
Sharma violated the Standards?
A. Yes, Misrepresentation /
B. No
C. Yes, Communication with Clients and Prospective Clients
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