CFA Part 1 Test Prep | 2025/2026 COMPLETE
QUESTIONS WITH CORRECT DETAILED
ANSWERS
Save
Terms in this set (238)
If a member self-discloses a matter the Professional Conduct Program staff
that questions his professional
conduct in his annual statement to
the CFA Institute, an initial
investigation is conducted by
Code of Ethics
A professional organization most ethical standards only.
appropriately enforces upon its
members:
,Moe Girard, CFA, works in a large does not need to take any action.
group that decides on
recommendations by consensus.
Girard does not always agree with
the group consensus, but he is
confident in the group's analytical
ability. To comply with the Code and
Standards when the group issues a
recommendation with which he
disagrees, Girard:
Adam Schute, CFA, is on a violated the Standard because he should have
conference call with the CFO of an taken steps to prevent the dissemination of the
investment banking client with his information.
phone speaker on and his door open.
As a result, salesmen and traders
overhear the CFO describing
problems with production target
dates that have not been publicly
disclosed. The salesmen relay this
information to clients and the traders
reduce their positions in the stock.
With respect to the Standard on
material nonpublic information,
Schute has:
When a member or candidate knows not required to report any of the violations to
that a client and coworker are authorities. (encouraged but not required to do
violating regulatory rules and local anything)
law, the member or candidate is:
, Carlos Mendez, CFA, is beginning an conflicts of interest.
investment advisory relationship with
a new client and plans to formulate
an investment policy statement (IPS)
for the client. According to the
Standard concerning suitability,
Mendez is least likely to consider the
client's:
With regard to performance permit both time-weighted and money-weighted
measurement, the Global Investment rates of return.
Performance Standards for firms:
Who maintains and interprets the the Standard of Practice Council
Code and Standards
When he assumed the job of Responsibilities of Supervisors by failing to
compliance officer two years ago, Ed implement reasonable procedures to detect
Michaels, CFA, issued written violations.
compliance procedures and made
all covered employees aware of the
procedures. A report by an external
auditor found that on several
occasions over the past two years,
two different employees traded in
recommended securities ahead of
trades made in managed client
accounts. Michaels fires both
employees and recirculates the
written compliance procedures that
explain clearly which activities are
prohibited. Michaels has violated the
Standard concerning:
QUESTIONS WITH CORRECT DETAILED
ANSWERS
Save
Terms in this set (238)
If a member self-discloses a matter the Professional Conduct Program staff
that questions his professional
conduct in his annual statement to
the CFA Institute, an initial
investigation is conducted by
Code of Ethics
A professional organization most ethical standards only.
appropriately enforces upon its
members:
,Moe Girard, CFA, works in a large does not need to take any action.
group that decides on
recommendations by consensus.
Girard does not always agree with
the group consensus, but he is
confident in the group's analytical
ability. To comply with the Code and
Standards when the group issues a
recommendation with which he
disagrees, Girard:
Adam Schute, CFA, is on a violated the Standard because he should have
conference call with the CFO of an taken steps to prevent the dissemination of the
investment banking client with his information.
phone speaker on and his door open.
As a result, salesmen and traders
overhear the CFO describing
problems with production target
dates that have not been publicly
disclosed. The salesmen relay this
information to clients and the traders
reduce their positions in the stock.
With respect to the Standard on
material nonpublic information,
Schute has:
When a member or candidate knows not required to report any of the violations to
that a client and coworker are authorities. (encouraged but not required to do
violating regulatory rules and local anything)
law, the member or candidate is:
, Carlos Mendez, CFA, is beginning an conflicts of interest.
investment advisory relationship with
a new client and plans to formulate
an investment policy statement (IPS)
for the client. According to the
Standard concerning suitability,
Mendez is least likely to consider the
client's:
With regard to performance permit both time-weighted and money-weighted
measurement, the Global Investment rates of return.
Performance Standards for firms:
Who maintains and interprets the the Standard of Practice Council
Code and Standards
When he assumed the job of Responsibilities of Supervisors by failing to
compliance officer two years ago, Ed implement reasonable procedures to detect
Michaels, CFA, issued written violations.
compliance procedures and made
all covered employees aware of the
procedures. A report by an external
auditor found that on several
occasions over the past two years,
two different employees traded in
recommended securities ahead of
trades made in managed client
accounts. Michaels fires both
employees and recirculates the
written compliance procedures that
explain clearly which activities are
prohibited. Michaels has violated the
Standard concerning:
