CFA Level 1 - Ethics Exam || With
Complete Solutions (100% Accurate)
I.B. Independence and Objectivity - ANSWER-Members and Candidates must use
reasonable care and judgment to achieve and maintain independence and objectivity in
their professional activities. Members and Candidates must not offer, solicit, or accept
any gift, benefit, compensation, or consideration that reasonably could be expected to
compromise their own or another's independence and objectivity.
I.C. Misrepresentation - ANSWER-Members and Candidates must not knowingly make
any misrepresentations relating to investment analysis, recommendations, actions, or
other professional activities.
I.D. Misconduct - ANSWER-Members and Candidates must not engage in any
professional conduct involving dishonesty, fraud, or deceit or commit any act that
reflects adversely on their professional reputation, integrity, or competence.
II.A. Material Nonpublic Information - ANSWER-Members and Candidates who possess
material nonpublic information that could affect the value of an investment must not act
or cause others to act on the information.
II.B. Market Manipulation - ANSWER-Members and Candidates must not engage in
practices that distort prices or artificially inflate trading volume with the intent to mislead
market participants.
III.A. Loyalty, Prudence and Care - ANSWER-Members and Candidates have a duty of
loyalty to their clients and must act with reasonable care and exercise prudent
judgment. Members and Candidates must act for the benefit of their clients and place
their clients' interests before their employer's or their own interests.
III.B. Fair Dealing - ANSWER-Members and Candidates must deal fairly and objectively
with all clients when providing investment analysis, making investment
recommendations, taking investment action, or engaging in other professional activities.
III.C. Suitability - ANSWER-1.When Members and Candidates are in an advisory
relationship with a client, they must:
a) make a reasonable inquiry into a client's or prospective client's investment
experience, risk and return objectives, and financial constraints prior to making any
investment recommendation or taking investment action and must reassess and update
this information regularly.
Complete Solutions (100% Accurate)
I.B. Independence and Objectivity - ANSWER-Members and Candidates must use
reasonable care and judgment to achieve and maintain independence and objectivity in
their professional activities. Members and Candidates must not offer, solicit, or accept
any gift, benefit, compensation, or consideration that reasonably could be expected to
compromise their own or another's independence and objectivity.
I.C. Misrepresentation - ANSWER-Members and Candidates must not knowingly make
any misrepresentations relating to investment analysis, recommendations, actions, or
other professional activities.
I.D. Misconduct - ANSWER-Members and Candidates must not engage in any
professional conduct involving dishonesty, fraud, or deceit or commit any act that
reflects adversely on their professional reputation, integrity, or competence.
II.A. Material Nonpublic Information - ANSWER-Members and Candidates who possess
material nonpublic information that could affect the value of an investment must not act
or cause others to act on the information.
II.B. Market Manipulation - ANSWER-Members and Candidates must not engage in
practices that distort prices or artificially inflate trading volume with the intent to mislead
market participants.
III.A. Loyalty, Prudence and Care - ANSWER-Members and Candidates have a duty of
loyalty to their clients and must act with reasonable care and exercise prudent
judgment. Members and Candidates must act for the benefit of their clients and place
their clients' interests before their employer's or their own interests.
III.B. Fair Dealing - ANSWER-Members and Candidates must deal fairly and objectively
with all clients when providing investment analysis, making investment
recommendations, taking investment action, or engaging in other professional activities.
III.C. Suitability - ANSWER-1.When Members and Candidates are in an advisory
relationship with a client, they must:
a) make a reasonable inquiry into a client's or prospective client's investment
experience, risk and return objectives, and financial constraints prior to making any
investment recommendation or taking investment action and must reassess and update
this information regularly.
