Chartered Financial Analyst (CFA) Level I
Examination (AGACNP-C) 2026–2027 |
Comprehensive Question Practice Test
with Answers & Rationales| Free Pdf
Access
1. According to the CFA Institute Code of Ethics, members should:
A. Act with integrity, competence, diligence, respect, and in an ethical manner
B. Guarantee positive investment returns
C. Place employer interests above client interests
D. Share confidential client information
Correct Answer: A
Rationale: The CFA Code of Ethics requires members to act ethically, professionally, and
in the best interests of clients.
2. Which CFA Standard requires members to place client interests before
their own?
A. Loyalty, Prudence, and Care
B. Misrepresentation
C. Independence and Objectivity
,D. Record Retention
Correct Answer: A
Rationale: Members have a fiduciary duty to act for the benefit of clients.
3. Material non-public information should:
A. Never be used for investment decisions
B. Be shared with colleagues
C. Be used immediately for trading
D. Be disclosed to friends
Correct Answer: A
Rationale: Trading on material non-public information violates ethical standards and
securities laws.
4. Which action best demonstrates independence and objectivity?
A. Refusing gifts that could influence professional judgment
B. Accepting expensive vacations from issuers
C. Trading ahead of clients
D. Recommending investments based on personal benefit
Correct Answer: A
Rationale: Members should avoid situations that impair objectivity.
5. Investment recommendations should be based on:
A. Thorough research and a reasonable basis
, B. Rumours
C. Social media opinions
D. Personal preferences
Correct Answer: A
Rationale: CFA Standards require diligence and reasonable analysis.
6. The arithmetic mean is:
A. The sum of observations divided by the number of observations
B. The middle observation
C. The most frequent observation
D. The largest observation
Correct Answer: A
Rationale: The arithmetic mean measures the average value.
7. Standard deviation measures:
A. Dispersion around the mean
B. Average return
C. Median
D. Correlation
Correct Answer: A
Rationale: Standard deviation measures the variability of returns.
8. Variance equals:
Examination (AGACNP-C) 2026–2027 |
Comprehensive Question Practice Test
with Answers & Rationales| Free Pdf
Access
1. According to the CFA Institute Code of Ethics, members should:
A. Act with integrity, competence, diligence, respect, and in an ethical manner
B. Guarantee positive investment returns
C. Place employer interests above client interests
D. Share confidential client information
Correct Answer: A
Rationale: The CFA Code of Ethics requires members to act ethically, professionally, and
in the best interests of clients.
2. Which CFA Standard requires members to place client interests before
their own?
A. Loyalty, Prudence, and Care
B. Misrepresentation
C. Independence and Objectivity
,D. Record Retention
Correct Answer: A
Rationale: Members have a fiduciary duty to act for the benefit of clients.
3. Material non-public information should:
A. Never be used for investment decisions
B. Be shared with colleagues
C. Be used immediately for trading
D. Be disclosed to friends
Correct Answer: A
Rationale: Trading on material non-public information violates ethical standards and
securities laws.
4. Which action best demonstrates independence and objectivity?
A. Refusing gifts that could influence professional judgment
B. Accepting expensive vacations from issuers
C. Trading ahead of clients
D. Recommending investments based on personal benefit
Correct Answer: A
Rationale: Members should avoid situations that impair objectivity.
5. Investment recommendations should be based on:
A. Thorough research and a reasonable basis
, B. Rumours
C. Social media opinions
D. Personal preferences
Correct Answer: A
Rationale: CFA Standards require diligence and reasonable analysis.
6. The arithmetic mean is:
A. The sum of observations divided by the number of observations
B. The middle observation
C. The most frequent observation
D. The largest observation
Correct Answer: A
Rationale: The arithmetic mean measures the average value.
7. Standard deviation measures:
A. Dispersion around the mean
B. Average return
C. Median
D. Correlation
Correct Answer: A
Rationale: Standard deviation measures the variability of returns.
8. Variance equals:
