Cfa, Mock Exam A - Morning Session
Questions And Answers With Verified
Solutions 100% Correct Rated A+
What are the the nine major provisions of the Global Investment Performance
Standards (GIPS)? - ANSWER✔✔1)Calculation Methodology
2)Composite Construction
3)Disclosure
4)Fundamentals of Compliance
5)Input Data
6)Presentation and Reporting
7)Private Equity
8)Real Estate
9)Wrap Fee/ (SMA) Separately Managed Account Portfolios.
What are the two primary principles of the CFA Institute Rules of Procedure for
Proceedings Related to Profressional conduct are? -
ANSWER✔✔1)Confidentiality of proceedings
2) fair process to the member and candidates
In order to achieve compliance with GIPS Standards, it is recommended that firms
- ANSWER✔✔adopt the broadest, most meaningful definition of the firm
what are the six components of the CFA Code of Ethics -
ANSWER✔✔1)Professionalism
2)Integrity of Capital Markets
,3)Duties to Clients
4)Duties to Employers
5)Investment Analysis, Recommendations, & Actions
6)Conflicts of Interest (must disclose)
Because Atlantic management thinks hedge funds are a fad, she does not inform
her supervisor about the hedge fund she created. This violates what standard -
ANSWER✔✔disclosure of conflicts
Gips Standards benefit what two main groups? - ANSWER✔✔Investment
management firms and prospective clients
The final stage of Alzheimer's is when individuals lose the ability to respond to
their environment, the ability to speak, and, ultimately, the ability to control
movement. Leisberg is the charismatic founder of Red Ribbon, and under his
leadership the company grew to become one of the largest in the industry. Upon
learning this, what should the analyst do? - ANSWER✔✔encourage Red Ribbon
Mining management to disclose the president's medical condition.
the minimum rate of return an investor must receive in order to accept an
investment is best described as the? - ANSWER✔✔required rate of return
money-weighted rate of return (MWR) - ANSWER✔✔sensitive to the additions
and withdrawals of funds in a portfolio over the course of an investment.
---
If, at inception, investors A and B invest amounts of different size in the same
fund but then neither add nor withdraw any cash for two years, they will obtain
, exactly the same MWR. In contrast, if investor A increases the investment in the
fund at the end of year 1 and investor B does not make any additions or
withdrawals, then Investor A will have a lower MWR than investor B because in
year 2 the fund underperformed with respect to year 1
All else held constant, the width of a confidence interval for a population mean is
most likely to be smaller if the sample size is: - ANSWER✔✔Larger and the
degree of confidence is lower
A two-tailed test of the null hypothesis that the mean of a distribution is equal to
4.00 has a p-value of 0.0567. Using a 5% level of significance (i.e., α = 0.05), the
best conclusion is to: - ANSWER✔✔fail to reject the null hypothesis
A portfolio manager would like to calculate the compound rate of return on an
investment. Which of the following mean returns will he most likely use? -
ANSWER✔✔Geometric
A portfolio manager estimates the probabilities of the following events for a
mutual fund:
Event A: the fund will earn a return of 5%.
Event B: the fund will earn a return below 5%.
The least appropriate description of the events is that they are: -
ANSWER✔✔=exhaustive
(they are dependent and mutually exclusive(can not occur at the same time)
Questions And Answers With Verified
Solutions 100% Correct Rated A+
What are the the nine major provisions of the Global Investment Performance
Standards (GIPS)? - ANSWER✔✔1)Calculation Methodology
2)Composite Construction
3)Disclosure
4)Fundamentals of Compliance
5)Input Data
6)Presentation and Reporting
7)Private Equity
8)Real Estate
9)Wrap Fee/ (SMA) Separately Managed Account Portfolios.
What are the two primary principles of the CFA Institute Rules of Procedure for
Proceedings Related to Profressional conduct are? -
ANSWER✔✔1)Confidentiality of proceedings
2) fair process to the member and candidates
In order to achieve compliance with GIPS Standards, it is recommended that firms
- ANSWER✔✔adopt the broadest, most meaningful definition of the firm
what are the six components of the CFA Code of Ethics -
ANSWER✔✔1)Professionalism
2)Integrity of Capital Markets
,3)Duties to Clients
4)Duties to Employers
5)Investment Analysis, Recommendations, & Actions
6)Conflicts of Interest (must disclose)
Because Atlantic management thinks hedge funds are a fad, she does not inform
her supervisor about the hedge fund she created. This violates what standard -
ANSWER✔✔disclosure of conflicts
Gips Standards benefit what two main groups? - ANSWER✔✔Investment
management firms and prospective clients
The final stage of Alzheimer's is when individuals lose the ability to respond to
their environment, the ability to speak, and, ultimately, the ability to control
movement. Leisberg is the charismatic founder of Red Ribbon, and under his
leadership the company grew to become one of the largest in the industry. Upon
learning this, what should the analyst do? - ANSWER✔✔encourage Red Ribbon
Mining management to disclose the president's medical condition.
the minimum rate of return an investor must receive in order to accept an
investment is best described as the? - ANSWER✔✔required rate of return
money-weighted rate of return (MWR) - ANSWER✔✔sensitive to the additions
and withdrawals of funds in a portfolio over the course of an investment.
---
If, at inception, investors A and B invest amounts of different size in the same
fund but then neither add nor withdraw any cash for two years, they will obtain
, exactly the same MWR. In contrast, if investor A increases the investment in the
fund at the end of year 1 and investor B does not make any additions or
withdrawals, then Investor A will have a lower MWR than investor B because in
year 2 the fund underperformed with respect to year 1
All else held constant, the width of a confidence interval for a population mean is
most likely to be smaller if the sample size is: - ANSWER✔✔Larger and the
degree of confidence is lower
A two-tailed test of the null hypothesis that the mean of a distribution is equal to
4.00 has a p-value of 0.0567. Using a 5% level of significance (i.e., α = 0.05), the
best conclusion is to: - ANSWER✔✔fail to reject the null hypothesis
A portfolio manager would like to calculate the compound rate of return on an
investment. Which of the following mean returns will he most likely use? -
ANSWER✔✔Geometric
A portfolio manager estimates the probabilities of the following events for a
mutual fund:
Event A: the fund will earn a return of 5%.
Event B: the fund will earn a return below 5%.
The least appropriate description of the events is that they are: -
ANSWER✔✔=exhaustive
(they are dependent and mutually exclusive(can not occur at the same time)
