I attempted the CFA Institute Code and Standards Self-Test today. These are the questions that I got wrong: Question 2 of 49 Danaher heads the research department of a large brokerage firm. The firm has many analysts, some of whom are subject to the Code and Standards. Which statement best describes Danaher’s ability to delegate her supervisory responsibilities under the Code and Standards? Danaher would retain supervisory responsibility for all subordinates despite her delegation of some duties. Danaher would no longer have responsibility for those duties delegated to her subordinates. Danaher cannot delegate supervisory responsibility to those subordinates who are not subject to the Code and Standards. The Code and Standards prevent Danaher from delegating supervisory duties to subordinates. Question 5 of 49 Which of the following actions is LEAST LIKELY to be a violation of the Code and Standards: Cheating on the CFA Examination. Posting derogatory comments regarding the CFA Program on a website for CFA candidates. Misrepresenting information on the CFA Institute annual Professional Conduct Statement. Misrepresenting information when applying for Professional Development credit. Question 19 of 49 Gaines, a financial analyst for Skinner Investment Counseling, is told by the investor relations representative for Firebird Avionics, a major aircraft parts manufacturer, that the firm is in the final stages of building a new fuel efficient jet engine. This information is divulged by Firebird at the most recent quarterly conference call for analysts. Gaines uses this information along with other information he obtained from the company and distributed to the public in a research report that includes a “buy” recommendation for Firebird stock. Which of the following statements is CORRECT: Gaines violated the Code and Standards because he failed to separate opinion from fact. Gaines violated the Code and Standards because he has a material misrepresentation in his report. Gaines violated the Code and Standards because he used material nonpublic information. Gaines’ actions did not violate the Code and Standards. Question 32 of 49 Which one of the following scenarios is MOST LIKELY to be a violation of the Code and Standards: Personal bankruptcy. A conviction for drunk driving. A conviction for possession of drugs. Submitting false expense reimbursement forms. Question 37 of 49 Which of the following statements regarding research reports is/are CORRECT according to the Standards of Practice Handbook? I. Members should outline known limitations of their analysis. II. Reports should be supported by background and supporting information, and this information should be available to interested parties. III. Members must include all relevant factors in research reports. I, II, and III. I and II. II and III. I and III. Question 38 of 49 Which of the following is LEAST LIKELY to assist a Member in meeting their obligations with regard to presenting investment performance under the Code and Standards: Presenting the performance of a new investment strategy by applying the strategy to historical performance data. Presenting the performance of the weighted composite of similar portfolios. Making disclosures that explain the performance results being reported. Complying with the Global Investment Performance Standards (GIPS). Question 47 of 49 Sheramy, a portfolio manager for Woodbridge Investment handles the account of Zamborino, a client of the firm. Zamborino offers to pay Sheramy a $100,000 bonus over and above her compensation from Woodbridge Investments if Sheramy achieves an 18 percent annual return for Zamborino’s account. Sheramy: Cannot accept this offer because it is outside of her primary employment relationship with Woodbridge Investments. Can accept this offer as long as she discloses the arrangement to her employer. Cannot accept this offer because it will interfere with her independence and ability to be objective regarding investment decisions and recommendations. Can accept this offer and disclose the bonus to her employer only if she actually achieves the performance target and receives the gift. I’d really appreciate if you guys could help to point out the right answers and ,if you could, some explanation. Thank you.
trung55 Wrote: ------------------------------------------------------- > I attempted the CFA Institute Code and Standards > Self-Test today. > These are the questions that I got wrong: > > Question 2 of 49 > Danaher heads the research department of a large > brokerage firm. The firm has many analysts, some > of whom are subject to the Code and Standards. > Which statement best describes Danaher’s ability > to delegate her supervisory responsibilities under > the Code and Standards? > Danaher would retain supervisory responsibility > for all subordinates despite her delegation of > some duties. > Danaher would no longer have responsibility for > those duties delegated to her subordinates. > Danaher cannot delegate supervisory > responsibility to those subordinates who are not > subject to the Code and Standards. > The Code and Standards prevent Danaher from > delegating supervisory duties to subordinates. > -> A She will always retain the supervisory rights > > Question 5 of 49 > Which of the following actions is LEAST LIKELY to > be a violation of the Code and Standards: > Cheating on the CFA Examination. > Posting derogatory comments regarding the CFA > Program on a website for CFA candidates. > Misrepresenting information on the CFA Institute > annual Professional Conduct Statement. > Misrepresenting information when applying for > Professional Development credit. > > POsting derogatory remarks - > IT is ur personal opinion > Question 19 of 49 > Gaines, a financial analyst for Skinner Investment > Counseling, is told by the investor relations > representative for Firebird Avionics, a major > aircraft parts manufacturer, that the firm is in > the final stages of building a new fuel efficient > jet engine. This information is divulged by > Firebird at the most recent quarterly conference > call for analysts. Gaines uses this information > along with other information he obtained from the > company and distributed to the public in a > research report that includes a “buy” > recommendation for Firebird stock. Which of the > following statements is CORRECT: > Gaines violated the Code and Standards because he > failed to separate opinion from fact. > Gaines violated the Code and Standards because he > has a material misrepresentation in his report. > Gaines violated the Code and Standards because he > used material nonpublic information. > Gaines’ actions did not violate the Code and > Standards. > I got this wron too. NOW I think that he hasnt violated anything but I am not sure. > > Question 32 of 49 > Which one of the following scenarios is MOST > LIKELY to be a violation of the Code and > Standards: > Personal bankruptcy. > > A conviction for drunk driving. > > A conviction for possession of drugs. > > Submitting false expense reimbursement forms. > > Misconduct- > Submitting false expense reimbursement forms. > > Question 37 of 49 > Which of the following statements regarding > research reports is/are CORRECT according to the > Standards of Practice Handbook? > > I. Members should outline known limitations > of their analysis. > II. Reports should be supported by background > and supporting information, and this information > should be available to interested parties. > III. Members must include all relevant > factors in research reports. > I, II, and III. > > I and II. > > II and III. > > I and III. > > > ANs 1 and 2
trung55 Wrote: ------------------------------------------------------- > I attempted the CFA Institute Code and Standards > Self-Test today. > These are the questions that I got wrong: > > Question 2 of 49 > Danaher heads the research department of a large > brokerage firm. The firm has many analysts, some > of whom are subject to the Code and Standards. > Which statement best describes Danaher’s ability > to delegate her supervisory responsibilities under > the Code and Standards? > Danaher would retain supervisory responsibility > for all subordinates despite her delegation of > some duties. Danaher would no longer have responsibility for > those duties delegated to her subordinates. > Danaher cannot delegate supervisory > responsibility to those subordinates who are not > subject to the Code and Standards. > The Code and Standards prevent Danaher from > delegating supervisory duties to subordinates. > > > Question 5 of 49 > Which of the following actions is LEAST LIKELY to > be a violation of the Code and Standards: > Cheating on the CFA Examination. > Posting derogatory comments regarding the CFA > Program on a website for CFA candidates. Misrepresenting information on the CFA Institute > annual Professional Conduct Statement. > Misrepresenting information when applying for > Professional Development credit. > > > Question 19 of 49 > Gaines, a financial analyst for Skinner Investment > Counseling, is told by the investor relations > representative for Firebird Avionics, a major > aircraft parts manufacturer, that the firm is in > the final stages of building a new fuel efficient > jet engine. This information is divulged by > Firebird at the most recent quarterly conference > call for analysts. Gaines uses this information > along with other information he obtained from the > company and distributed to the public in a > research report that includes a “buy” > recommendation for Firebird stock. Which of the > following statements is CORRECT: > Gaines violated the Code and Standards because he > failed to separate opinion from fact. > Gaines violated the Code and Standards because he > has a material misrepresentation in his report. > Gaines violated the Code and Standards because he > used material nonpublic information. > Gaines’ actions did not violate the Code and > Standards. > > Question 32 of 49 > Which one of the following scenarios is MOST > LIKELY to be a violation of the Code and > Standards: > Personal bankruptcy. > > A conviction for drunk driving. > > A conviction for possession of drugs. > > Submitting false expense reimbursement forms. > > > Question 37 of 49 > Which of the following statements regarding > research reports is/are CORRECT according to the > Standards of Practice Handbook? > > I. Members should outline known limitations > of their analysis. > II. Reports should be supported by background > and supporting information, and this information > should be available to interested parties. > III. Members must include all relevant > factors in research reports. > I, II, and III. > > I and II. > II and III. > > I and III. > > > > Question 38 of 49 > Which of the following is LEAST LIKELY to assist a > Member in meeting their obligations with regard to > presenting investment performance under the Code > and Standards: > Presenting the performance of a new investment > strategy by applying the strategy to historical > performance data. Presenting the performance of the weighted > composite of similar portfolios. > Making disclosures that explain the performance > results being reported. > > Complying with the Global Investment Performance > Standards (GIPS). > > > Question 47 of 49 > Sheramy, a portfolio manager for Woodbridge > Investment handles the account of Zamborino, a > client of the firm. Zamborino offers to pay > Sheramy a $100,000 bonus over and above her > compensation from Woodbridge Investments if > Sheramy achieves an 18 percent annual return for > Zamborino’s account. Sheramy: > Cannot accept this offer because it is outside of > her primary employment relationship with > Woodbridge Investments. > Can accept this offer as long as she discloses > the arrangement to her employer. Cannot accept this offer because it will > interfere with her independence and ability to be > objective regarding investment decisions and > recommendations. > Can accept this offer and disclose the bonus to > her employer only if she actually achieves the > performance target and receives the gift. > > > I’d really appreciate if you guys could help to > point out the right answers and ,if you could, > some explanation. > Thank you.
> Question 19 of 49 > Gaines, a financial analyst for Skinner Investment > Counseling, is told by the investor relations > representative for Firebird Avionics, a major > aircraft parts manufacturer, that the firm is in > the final stages of building a new fuel efficient > jet engine. This information is divulged by > Firebird at the most recent quarterly conference > call for analysts. Gaines uses this information > along with other information he obtained from the > company and distributed to the public in a > research report that includes a “buy” > recommendation for Firebird stock. Which of the > following statements is CORRECT: > Gaines violated the Code and Standards because he > failed to separate opinion from fact. > Gaines violated the Code and Standards because he > has a material misrepresentation in his report. > Gaines violated the Code and Standards because he > used material nonpublic information. > Gaines’ actions did not violate the Code and > Standards. Gaines violated the Code and Standards because he used material nonpublic information. handbook clearly states that analyst conference call is NOT a public release. this one is clearly a selective disclosure.
No its not. I put tht ans in the test and got it wtong. Since he did not rely on the management and came to his conclusion, he has an adequate basis
I said Gaines violated using material nonpublic too and I got it wrong. I guess the reason is that buidlign an efficient jet engine in the final stages is nonmaterial… What’s the point of passing this self-test? I passed, now what?
Thanks alot guys. Appreciate the prompt replies. I roughly understand alrd.
I really need an answer to the first question you had posted
Any update?
Coming to the party 13 years late, I wouldn’t hold out a lot of hope for an answer.