CFA Level 1, Mock Exam A: Afternon Session
questions and answers 2025\2026 A+ Grade
GIPS Standards
- correct answer
In cases where applicable local laws governing calculation and presentation of investment performance
conflict with the GIPS standards, firms are:
- correct answer required to comply with local regulations and make full disclose of the conflict to claim
GIPS compliance
Vishal Chandarana, an unemployed research analyst, recently registered for the CFA Level I exam. After
two months of intense interviewing, he accepts a job with a stock brokerage company in a different
region of the country. Chandarana posts on a social media blog how being a CFA candidate really helped
him get a job. He also notes how relieved he was when his new employer didn't ask him about being
fired from his former employer. Which CFA Institute Code of Ethics or Standards of Professional Conduct
did Chandarana least likely violate?
- correct answer reference to the CFA Program
Miranda Grafton, CFA, purchased a large block of stock at varying prices during the trading session. The
stock realized a significant gain in value before the close of the trading day, so Grafton reviewed her
purchase prices to determine what prices should be assigned to each specific account. According to the
Standards of Practice Handbook, Grafton's least appropriate action is to allocate the execution prices:
- correct answer across the participating client accounts pro rata on the basis of account size
Lawrence Hall, CFA, and Nancy Bishop, CFA, began a joint research report on Stamper Corporation.
Bishop visited Stamper's corporate headquarters for several days and met with all company officers.
Prior to the completion of the report, Bishop was reassigned to another project. Hall utilized his and
Bishop's research to write the report but did not include Bishop's name on the report because he did
not agree with and changed Bishop's conclusion included in the final report. According to the CFA
Institute Standards of Practice Handbook, did Hall most likely violate any CFA Institute Standards of
Professional Conduct?
- correct answer no
, Which of the following groups is most likely responsible for maintaining oversight and responsibility for
the Professional Conduct Program (PCP)
- correct answer CFA Institute Board of Governors
When can a party, nonmember or firm, most likely claim compliance with the CFA Institute Code of
Ethics and Standards of Professional Conduct? Once they have:
- correct answer ensure that their code and ethics meets the principles of the code and standards
Q. Sisse Brimberg, CFA, is responsible for performance presentations at her investment firm. The
presentation that Sisse uses states that when making performance presentations her firm:
deducts all fees and taxes;
uses actual and simulated performance results; and
bases the performance on a representative individual account.
- correct answer a weighted composite for all similar discretionary portfolios
EAR
- correct answer (1 + periodic interest rate)m − 1
bank discount yield, rbd
- correct answer rBD = (D/F)×(360t)
discrete random variable
- correct answer IS A RANDOM VARAIBLE THAT CAN TAKE ON AT MOST A CONTABLE NUMBER OF
POSSIBLE VALUES
(hpr) holding period return
- correct answer (P1 − P0 + D1)/P0
empirical probability
- correct answer a probability estimated from data as a relative frequency of occurrence
questions and answers 2025\2026 A+ Grade
GIPS Standards
- correct answer
In cases where applicable local laws governing calculation and presentation of investment performance
conflict with the GIPS standards, firms are:
- correct answer required to comply with local regulations and make full disclose of the conflict to claim
GIPS compliance
Vishal Chandarana, an unemployed research analyst, recently registered for the CFA Level I exam. After
two months of intense interviewing, he accepts a job with a stock brokerage company in a different
region of the country. Chandarana posts on a social media blog how being a CFA candidate really helped
him get a job. He also notes how relieved he was when his new employer didn't ask him about being
fired from his former employer. Which CFA Institute Code of Ethics or Standards of Professional Conduct
did Chandarana least likely violate?
- correct answer reference to the CFA Program
Miranda Grafton, CFA, purchased a large block of stock at varying prices during the trading session. The
stock realized a significant gain in value before the close of the trading day, so Grafton reviewed her
purchase prices to determine what prices should be assigned to each specific account. According to the
Standards of Practice Handbook, Grafton's least appropriate action is to allocate the execution prices:
- correct answer across the participating client accounts pro rata on the basis of account size
Lawrence Hall, CFA, and Nancy Bishop, CFA, began a joint research report on Stamper Corporation.
Bishop visited Stamper's corporate headquarters for several days and met with all company officers.
Prior to the completion of the report, Bishop was reassigned to another project. Hall utilized his and
Bishop's research to write the report but did not include Bishop's name on the report because he did
not agree with and changed Bishop's conclusion included in the final report. According to the CFA
Institute Standards of Practice Handbook, did Hall most likely violate any CFA Institute Standards of
Professional Conduct?
- correct answer no
, Which of the following groups is most likely responsible for maintaining oversight and responsibility for
the Professional Conduct Program (PCP)
- correct answer CFA Institute Board of Governors
When can a party, nonmember or firm, most likely claim compliance with the CFA Institute Code of
Ethics and Standards of Professional Conduct? Once they have:
- correct answer ensure that their code and ethics meets the principles of the code and standards
Q. Sisse Brimberg, CFA, is responsible for performance presentations at her investment firm. The
presentation that Sisse uses states that when making performance presentations her firm:
deducts all fees and taxes;
uses actual and simulated performance results; and
bases the performance on a representative individual account.
- correct answer a weighted composite for all similar discretionary portfolios
EAR
- correct answer (1 + periodic interest rate)m − 1
bank discount yield, rbd
- correct answer rBD = (D/F)×(360t)
discrete random variable
- correct answer IS A RANDOM VARAIBLE THAT CAN TAKE ON AT MOST A CONTABLE NUMBER OF
POSSIBLE VALUES
(hpr) holding period return
- correct answer (P1 − P0 + D1)/P0
empirical probability
- correct answer a probability estimated from data as a relative frequency of occurrence
