CAIA Exam Sample | 74 Questions with 100% Correct Answers | Verified | 22 Pages

Samuel Tong, CAIA, has clients who await his recommendation of a particular stock that is about to release earnings. From his office he sends the single recommendation "Sell" to all his clients via a text message that includes the phrase "more info on web." Does this communication violate Standard V(B): Communication with Clients and Prospective Clients? - No A communication may be in capsule form but members should notify clients that additional information and analyses are available from the producer of the report Standard VI(A): Disclosure of Conflicts states that members and candidates must make - full and fair disclosure of all matters that could reasonably be expected to impair the independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer. Even friends. Standard IV(C): Responsibilities of Supervisors states that members and candidates must make reasonable efforts to ensure that anyone subject to their supervision or authority complies with applicable laws, rules, regulations, and the Code and Standards. - Mr. Malone has committed no violation. He has informed his supervisor, the CEO, of the model changes. It is the CEO's responsibility to inform the investors. Maxwell Chalmers, CAIA, is the founder of and a partner in a quantitative hedge fund. He has developed a proprietary factor model that tracks social media patterns to identify market supply and demand trends. His model was developed and tested using 12 months of data. Based on the