CFA Sample Exam
Chartered Financial Analyst®
CFA®
2011 CFA Level 1 Sample Exam Questions and Answers
• 2011 CFA Level 1 Sample Exam Version 1-2
2011 CFA Level 1 Sample Exam
2011 Level 1 Sample Exam Volume 1
SS1 -Ethics and Professional Standards 1. Abasi Hasina, CFA, signed an employment contract with a non-compete clause restricting him from working for a competitor for three years after leaving the employer, an investment bank. After one year, Hsaina. quits his job for a position with an investment bank in a city across the country. The new job pays twice as much as the old one. Lawyers with whom he consulted determined the non-compete clause was a violation of human rights and thus illegal, so he took the offer. Did Hssina most likely violate the CFA Insitute Code of Ethics? A. Yes B. No, the non-compete clause was considered illegal. C. No, the non-compete clause is void since the new position is geographically distant. 2. Benefits of compliance with the CFA Institute Global Investment Performance Standards(GIPSa) least likely include: A. strengthening of internal controls. B. Participation in competitive bidding. C. Elimination of in-depth due diligence for investors. 3. Who is most likely responsible for claiming and maintaining compliance with CFA Institute Global Investment Performance Standards (GIPSb)? A. An independent third party B. The firm claiming compliance C. The risk management department 4. Mariam Musa, CFA, Head of Compliance at Dunfield Brokers, questions her colleague Omar Kassim, a CFA Candidate and a research analyst, about his purchase of shares in a company for his own account immediately before he published a "buy" . recommendation. He defends his actions by stating he has done nothing wrong because Dunfield doesn 't have any personal trading policies in place. The CFA Institute Code of Ethics and Standards of Professional Conduct were most likely violated by: A. only Musa. B. only Kassim C. both Musa and Kassim. 5. Zhao Xuan, CFA, is a
CFA®
2011 CFA Level 1 Sample Exam Questions and Answers
• 2011 CFA Level 1 Sample Exam Version 1-2
2011 CFA Level 1 Sample Exam
2011 Level 1 Sample Exam Volume 1
SS1 -Ethics and Professional Standards 1. Abasi Hasina, CFA, signed an employment contract with a non-compete clause restricting him from working for a competitor for three years after leaving the employer, an investment bank. After one year, Hsaina. quits his job for a position with an investment bank in a city across the country. The new job pays twice as much as the old one. Lawyers with whom he consulted determined the non-compete clause was a violation of human rights and thus illegal, so he took the offer. Did Hssina most likely violate the CFA Insitute Code of Ethics? A. Yes B. No, the non-compete clause was considered illegal. C. No, the non-compete clause is void since the new position is geographically distant. 2. Benefits of compliance with the CFA Institute Global Investment Performance Standards(GIPSa) least likely include: A. strengthening of internal controls. B. Participation in competitive bidding. C. Elimination of in-depth due diligence for investors. 3. Who is most likely responsible for claiming and maintaining compliance with CFA Institute Global Investment Performance Standards (GIPSb)? A. An independent third party B. The firm claiming compliance C. The risk management department 4. Mariam Musa, CFA, Head of Compliance at Dunfield Brokers, questions her colleague Omar Kassim, a CFA Candidate and a research analyst, about his purchase of shares in a company for his own account immediately before he published a "buy" . recommendation. He defends his actions by stating he has done nothing wrong because Dunfield doesn 't have any personal trading policies in place. The CFA Institute Code of Ethics and Standards of Professional Conduct were most likely violated by: A. only Musa. B. only Kassim C. both Musa and Kassim. 5. Zhao Xuan, CFA, is a