FinQuiz.com Level I of CFA Program 2 nd Mock Exam June 2020 Revision 1 Copyright © 2010-2020. FinQuiz.com. All rights reserved. Copying, reproduction or redistribution of this material is strictly prohibited. [email protected]
Level I of CFA Program Mock Exam 2 – Solutions (PM) FinQuiz.com © 2020 - All rights reserved. 2 FinQuiz.com – 2 nd Mock Exam 2020 (PM Session) Questions Topic Minutes 1-18 Ethical and Professional Standards 27 19-30 Quantitative Methods 18 31-42 Economics 18 43-60 Financial Reporting and Analysis 27 61-72 Corporate Finance 18 73-86 Equity Investments 21 87-98 Fixed Income Investments 18 99-104 Derivative Investments 9 105-112 Alternative Investments 12 113-120 Portfolio Management 12 Total 180
Level I of CFA Program Mock Exam 2 – Solutions (PM) FinQuiz.com © 2020 - All rights reserved. 3 Questions 1 to 18 relate to Ethical and Professional Standards 1. Laura Elliot is a broker at Housegate, a broker-dealer firm. She undertakes trades on behalf of clients with a high net worth. She discovers that one of her clients has engaged in the embezzlement of portfolio funds, which classifies as an illegal activity under domestic trading regulations. In order to comply with the CFA Institute Standards of Professional Conduct, Elliot’s preliminary course of action would be to: A.request for a different assignment. B.report the violation to her supervisor. C.report the violation to regulatory authorities. Correct Answer: B Reference: CFA Level 1, Volume 1, Study Session 1, Reading 3, LOS c Upon learning of the illegal client activity, Elliot’s initial course of action should be to stop the behavior by bringing it to the attention of her supervisor or the firm’s compliance department. Should this prove unsuccessful, her next course of action would be to disassociate herself from undertaking trades on behalf of the client’s account. In the absence of any regulations, members and candidates are not required to report violations to the concerned governmental or regulatory organizations. 2. Standard I (A), Knowledge of the Law, requires members and/or candidates to: Reference: CFA Level 1, Volume 1, Study Session 1, Reading 3, LOS c
Level I of CFA Program Mock Exam 2 – Solutions (PM)
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