Can somebody please explain these questions. I am considering emailing the CFAI for clarification because they just dont make sense to me at all. 4, 8, 9
What is the answer saying? It says that A and C are clear violations so since B wasnt part of the vignette it is “inconsistent with CFA standards of professional conduct” it is right?
The answer uses “stricter, encompass, exceed” as descriptions of the new Euro laws relative to the US regs. This is not stated anywhere in the vignette. Unless “part” somehow is interpreted as meaning one of these descriptions but I dont see how that is possible in the english language.
The answer says that B is not an appropriate answer and says “Annual communication would not be considered timely”. The word annual or yearly is not used in the vignette for describing comminication in fact the vignette says “We also ensure that the client sees some sort of communication from us when they request it.” Im not sure how that can be translated into “Annual”
Any help or tranlsation would be much appreciated, I am seem to find their wording less than clear.
for Q 9, to me B is inappropriate because “some sort of” is not specific enough and there is no mention of frequency, only that it will be sent upon client request. in other words, no proactive communication.
Q 8 confounds me.
what about Q2? how can B not be inconsistent with standards? (simulated performance is allowed??)
I guess I can see your point on Q9 but it seems weird that they would make up a time frame that wasnt included in the vignette. I do think that Q2 was weird as well but I got it right because I relied on the permission of former employer standard. I am truly concerned that all my studying will be wasted if the CFAI asks questions that are open to interpretation so the answer does not test your knowledge, but creates a subjectivity component which is not something we are supposed to be tested on. I see similar questions in previous mocks that seem to be judged right by the “because we said so” doctrine. Even the correct swap question in this mock has 2 right answers but I guess they are looking for the “more right” one. I dont know how more people are not worried about this or if they simply leave their test scores to fate.
Yeah I had trouble interpreting what the hell their answer meant for Q4. I think/hope it’s a typo and “inconsistent” was supposed to be “consistent” or something like that.
Wait, just checked CFAI website, and there is an errata for the exam -
Errata Question #4: The question should read as follows: “Kim’s relationship with Miriam is inconsistent with the CFA Institute Standards of Professional Conduct concerning……” should be changed to “With regards to the information Kim received from Miriam, she least likely violated the CFA Institute Standards of Professional Conduct concerning….”
Glad I found this thread and that #4 was an error.
After studying ethics really hard this year I just scored 4/6 and 3/6 on the 2013 Mock ethics questions. It seems to me that these are not so much ethics questions as pure reading comprehension. I feel like I’m reading one of those Encylopedia Brown books I read when I was a kid and trying to solve the mystery.