CFA LEVEL 1 EXAM 2026/2027 BANK 1300+
QUESTIONS ACCURATE ACTUAL EXAM /
FREQUENTLY TESTED QUESTIONS WITH
DETAILED ANSWERS | GUARANTEED PASS
| GRADED A | LATEST UPDATE
Phil Jones, CFA, has just finished researching Alpha One Inc. and is about to issue
an unfavorable report on the company. His manager does not want him to state
any adverse opinions about Alpha One, as it could adversely affect their firm's
relations with the company, which is an important investment banking client.
Which of the following actions by the manager most likely violates Standard I (B):
Independence and Objectivity?
A Putting Alpha One on a restricted list
B Asking Jones to issue a favorable report
C Asking Jones to only state facts about the company - CORRECT ANSWER ✔✔- B
Which of the following is least likely a violation of Standard I (D): Misconduct?
A Engaging in frequent fights on the trading floor
B Offering higher-quality services to certain clients
C Getting intoxicated during office hours - CORRECT ANSWER ✔✔- B
Martha Stevens, CFA, is an investment manager who uses her friend, Robert
James, exclusively for her clients' brokerage transactions. James provides better
services than other brokers in return for a slightly higher price, which Stevens
believes is justified. Which of the following statements is most accurate?
Pg. 1
,A Stevens is in violation of Standard III (A): Loyalty, Prudence and Care.
B Stevens is in violation of Standard III (B): Fair Dealing.
C Stevens has not violated any standard. - CORRECT ANSWER ✔✔- C
Alexis King, CFA, an investment manager at Invest One Corporation, is asked by
her supervisor to make a presentation to a potential client. In the presentation,
King uses weighted composites of all similar portfolios to present the firm's
performance over the past 10 years, during which the firm earned an average
return of 13%. Which of the following statements is most accurate?
A King has violated Standard III (D): Performance Presentation.
B King has violated Standard I (C): Misrepresentation.
C King has not violated any standards. - CORRECT ANSWER ✔✔- C
Frank Henry, CFA, works as an investment manager at Beta Financials. One of his
clients offered him a free trip to Mauritius for excellent performance, which
Henry accepted. Henry's boss recently learned about this arrangement from
another employee, but did not do anything about the arrangement, as the client
was very important to the firm. Which of the following is most likely?
A Henry violated Standard IV (B): Additional Compensation Arrangements.
B Henry's boss violated Standard IV (C): Responsibilities of Supervisors.
C Henry violated Standard IV (B): Additional Compensation Arrangements and his
boss violated Standard IV (C): Responsibilities of Supervisors. - CORRECT ANSWER
✔✔- C
Which of the following is least likely a violation of Standard V (B): Communication
with Clients and Prospective Clients?
Pg. 2
,A An analyst recommends an investment to a client without going into specific
details because she feels that the client would not be able to understand the
complex models involved.
B An analyst divulges confidential information about current clients to prospective
clients.
C An analyst states his strong beliefs as facts in a research report. - CORRECT
ANSWER ✔✔- B
Which of the following is most likely a violation of Standard III (B): Fair Dealing?
A An analyst emphasizes the high returns of a trading strategy to a client without
providing detailed information about the strategy.
B An analyst carries out trades for discretionary accounts before non‐
discretionary accounts.
C An analyst guarantees high returns on a risky investment. - CORRECT ANSWER
✔✔- B
Laura Bolt, CFA, resides in a country called Lavasia, but frequently does business
in Magmaland, with a client who is a citizen of Magmaland. Lavasia's law applies
in this case and states that laws of the client's home country govern. Lavasia's
laws are more strict than the Code and Standards, while Magmaland's laws are
less strict than the Code and Standards. Bolt is most likely required to adhere to:
A The laws of Lavasia.
B The Code and Standards.
C The laws of Magmaland. - CORRECT ANSWER ✔✔- B
An analyst is flown along with a group of peers to a company's mining facilities on
a chartered flight, and put up in a hotel for three days. In determining whether
Pg. 3
, these arrangements violate Standard I (B): Independence and Objectivity, the
analyst must consider:
A Whether she can remain objective and whether her integrity might be
perceived by her clients to have been compromised.
B Whether she can remain objective and whether her employer is confident that
she will remain objective.
C Only whether her integrity might be perceived by her clients to have been
compromised. - CORRECT ANSWER ✔✔- A
Laura Jameson, CFA, is a portfolio manager at ALT Investments. Her firm is
allocated a very significant number of shares in the IPO of Hotstock Ltd., a
company that Jameson is very bullish on. Excited by the prospect of earning an
excellent return for her clients, Jameson allocates the shares evenly across all
accounts under management including those of her relatives. Jameson most
likely:
A Violated Standard III (C): Suitability.
B Violated Standard III (A): Loyalty, Prudence and Care.
C Has not violated the Code and the Standards. - CORRECT ANSWER ✔✔- A
To comply with Standard III (E): Preservation of Confidentiality, members must
preserve the confidentiality of information communicated to them by:
A Past, current, and prospective clients.
B Past and current clients only.
C Current and prospective clients only. - CORRECT ANSWER ✔✔- A
Abeer Dagha, CFA, has just been hired by Superior Investments after spending 20
years with Quality Investments. When Dagha begins her work with Superior
Investments she wants to get in touch with her former clients because she knows
Pg. 4
QUESTIONS ACCURATE ACTUAL EXAM /
FREQUENTLY TESTED QUESTIONS WITH
DETAILED ANSWERS | GUARANTEED PASS
| GRADED A | LATEST UPDATE
Phil Jones, CFA, has just finished researching Alpha One Inc. and is about to issue
an unfavorable report on the company. His manager does not want him to state
any adverse opinions about Alpha One, as it could adversely affect their firm's
relations with the company, which is an important investment banking client.
Which of the following actions by the manager most likely violates Standard I (B):
Independence and Objectivity?
A Putting Alpha One on a restricted list
B Asking Jones to issue a favorable report
C Asking Jones to only state facts about the company - CORRECT ANSWER ✔✔- B
Which of the following is least likely a violation of Standard I (D): Misconduct?
A Engaging in frequent fights on the trading floor
B Offering higher-quality services to certain clients
C Getting intoxicated during office hours - CORRECT ANSWER ✔✔- B
Martha Stevens, CFA, is an investment manager who uses her friend, Robert
James, exclusively for her clients' brokerage transactions. James provides better
services than other brokers in return for a slightly higher price, which Stevens
believes is justified. Which of the following statements is most accurate?
Pg. 1
,A Stevens is in violation of Standard III (A): Loyalty, Prudence and Care.
B Stevens is in violation of Standard III (B): Fair Dealing.
C Stevens has not violated any standard. - CORRECT ANSWER ✔✔- C
Alexis King, CFA, an investment manager at Invest One Corporation, is asked by
her supervisor to make a presentation to a potential client. In the presentation,
King uses weighted composites of all similar portfolios to present the firm's
performance over the past 10 years, during which the firm earned an average
return of 13%. Which of the following statements is most accurate?
A King has violated Standard III (D): Performance Presentation.
B King has violated Standard I (C): Misrepresentation.
C King has not violated any standards. - CORRECT ANSWER ✔✔- C
Frank Henry, CFA, works as an investment manager at Beta Financials. One of his
clients offered him a free trip to Mauritius for excellent performance, which
Henry accepted. Henry's boss recently learned about this arrangement from
another employee, but did not do anything about the arrangement, as the client
was very important to the firm. Which of the following is most likely?
A Henry violated Standard IV (B): Additional Compensation Arrangements.
B Henry's boss violated Standard IV (C): Responsibilities of Supervisors.
C Henry violated Standard IV (B): Additional Compensation Arrangements and his
boss violated Standard IV (C): Responsibilities of Supervisors. - CORRECT ANSWER
✔✔- C
Which of the following is least likely a violation of Standard V (B): Communication
with Clients and Prospective Clients?
Pg. 2
,A An analyst recommends an investment to a client without going into specific
details because she feels that the client would not be able to understand the
complex models involved.
B An analyst divulges confidential information about current clients to prospective
clients.
C An analyst states his strong beliefs as facts in a research report. - CORRECT
ANSWER ✔✔- B
Which of the following is most likely a violation of Standard III (B): Fair Dealing?
A An analyst emphasizes the high returns of a trading strategy to a client without
providing detailed information about the strategy.
B An analyst carries out trades for discretionary accounts before non‐
discretionary accounts.
C An analyst guarantees high returns on a risky investment. - CORRECT ANSWER
✔✔- B
Laura Bolt, CFA, resides in a country called Lavasia, but frequently does business
in Magmaland, with a client who is a citizen of Magmaland. Lavasia's law applies
in this case and states that laws of the client's home country govern. Lavasia's
laws are more strict than the Code and Standards, while Magmaland's laws are
less strict than the Code and Standards. Bolt is most likely required to adhere to:
A The laws of Lavasia.
B The Code and Standards.
C The laws of Magmaland. - CORRECT ANSWER ✔✔- B
An analyst is flown along with a group of peers to a company's mining facilities on
a chartered flight, and put up in a hotel for three days. In determining whether
Pg. 3
, these arrangements violate Standard I (B): Independence and Objectivity, the
analyst must consider:
A Whether she can remain objective and whether her integrity might be
perceived by her clients to have been compromised.
B Whether she can remain objective and whether her employer is confident that
she will remain objective.
C Only whether her integrity might be perceived by her clients to have been
compromised. - CORRECT ANSWER ✔✔- A
Laura Jameson, CFA, is a portfolio manager at ALT Investments. Her firm is
allocated a very significant number of shares in the IPO of Hotstock Ltd., a
company that Jameson is very bullish on. Excited by the prospect of earning an
excellent return for her clients, Jameson allocates the shares evenly across all
accounts under management including those of her relatives. Jameson most
likely:
A Violated Standard III (C): Suitability.
B Violated Standard III (A): Loyalty, Prudence and Care.
C Has not violated the Code and the Standards. - CORRECT ANSWER ✔✔- A
To comply with Standard III (E): Preservation of Confidentiality, members must
preserve the confidentiality of information communicated to them by:
A Past, current, and prospective clients.
B Past and current clients only.
C Current and prospective clients only. - CORRECT ANSWER ✔✔- A
Abeer Dagha, CFA, has just been hired by Superior Investments after spending 20
years with Quality Investments. When Dagha begins her work with Superior
Investments she wants to get in touch with her former clients because she knows
Pg. 4
