Will Hunter, CFA, is a portfolio manager at NV Asset Managers. An investment banker asks Hunter to purchase shares in a new IPO to support the price long enough for insiders to liquidate their holding

A bank trust department has three portfolio managers (Diane Cole, Tomas Bermudez, and Anthony Ring), who have been awarded the right to use the CFA designation, and one other employee (Diane Takao) who has registered for the Level 3 CFA exam. The bank wants to include information about these individuals in a brochure. According to CFA Institute Standards of Professional Conduct, which of the following is the mostappropriate use the designation in the brochure？

A) Anthony Ring is a Chartered Financial Analyst who has had 10 years of experience as a portfolio manager.

B) Diane Takao passed Level 2 of the CFA examination and is currently enrolled to take Level 3.

C) Tomas Bermudez is a CFA-type portfolio manager, who specializes in growth stocks.

D) Diane Cole is one of three CFAs in our trust department.

A.A portfolio manager accepts free trades from XYZ for her personal account for directing the portfolio’s trades to XYZ. She does not inform her manager since there is no cash involved.

B.After informing his manager, a portfolio manager accepts money for giving a broker information relating to a client’s financial standing.

C.A portfolio manager is offered a free vacation to increase performance. At the end of the year performance is up and the manager accepts the vacation after info rming his manager of the fact.

D.A portfolio manager is unexpectedly offered a vacation at year-end from a client who was pleased with their portfolio’s performance. The manager accepts the vacation after informing her manager of the fact.

Question 4

Sally Fiedler, CFA, is a portfolio manager for Asipre Investments, Inc. In her spare time Fiedler intends to manage the small endowment fund for her children’s private day school. She believes it will only take a couple of hours each weekend and she will receive a discount on tuition for her two children. According to Standard IV(B) – Additional Compensation Arrangements, Fiedler:

A.must inform her employer of the arrangement but need not get permission as the time commitment is small.

B.must inform her employer and get permission, either verbal or written.

C.must inform her employer of all the details of this arrangement and receive written permission.

D.need not inform her employer because it will be on her own time and there is no actual compensation received.

Consider a U.S. portfolio manager who holds a portfolio of French stocks currently worth €10 million. In order to hedge against a potential depreciation of the euro, the portfolio manager proposes to sell December futures contracts on the euro that currently trade at $1/€ and expire in two months. The spot exchange rate is currently $1.1/€. A month later, the value of the French portfolio is €10,050,000 and the spot exchange rate is $1.05/€, while the futures exchange rate is $0.95/€. a. Evaluate the effectiveness of the hedge by comparing the fully hedged portfolio return with the unhedged portfolio return. b. Calculate the return on the portfolio, assuming a 35 percent hedge ratio.

A fixed income portfolio manager is evaluating investments in the mortgage

market but is concerned about prepayment risk. The security that willmost likely

minimize prepayment risk is:

A. a mortgage passthrough security.

B. a portfolio of interest-only mortgage loans.

C. tranche B of a collateralized mortgage obligation.

Question 5

Ralph Reed, CFA, is a portfolio manager at Parker Management, a U.S. equities manager. When clients inquire about fixed income portfolio management, Reed refers them to Ann Foster, who refers clients seeking U.S. equities management to Reed. For clients with an interest in international equities, Reed refers them to Global Advisors and receives $1,000 for each referral that opens an account with them. Which of the following best describes the action Reed must take regarding clients he refers to Parker or to Global？

A.If a referred client opens an account with Parker or with Global, Reed must disclose the arrangement with Parker or amount of the referral fee he receives from Global.

B.At the time he makes a referral to one of these advisors, Reed must disclose the amount of the referral fee from Global, but not the arrangement with Parker.

C.At the time he makes the referral, Reed must disclose the arrangement with Parker, the arrangement with Global, and the amount of the referral fee he receives from Global.

D.At the time he makes a referral, Reed must disclose that he will receive a referral fee from Global, but not the amount or the arrangement with Parker.

lients. They have not been in contact for more than three years. Recently, Alex suddenly called Yuan and said that he made a lot of money and wanted to invest in some high-risk and high-yield investment products. Yuan immediately recommended and invested in some private equity funds. As usual, Yuan also prepared the list of these funds, the details of the proceeds, and sent them to Alex monthly. Did Yuan most likely violate the CFA Institute Code of Ethics and Standards of Professional Conduct？

A.Yes, he violated for investing private equity funds.

B.Yes, he violated for the details of proceeds.

C.No.

of money in their accounts. Yuan thinks that a recession is coming, so he begins to increase the proportion of less risky assets in each account. In order to comply with Standard V (B), Communication with Clients and Prospective Clients, Yuan should:

A.ensure that he does the same investment strategy for both clients.

B.communicate with both clients about the change and inform them that the investment is based on his opinion.

C.do both of that.

A、"To earn the right to use the CFA designation,Paula passed three exams covering ethics,financial statement analysis,asset valuation,and portfolio management."

B、"Paula passed three 6-hour exams on her first attempts and is a member of her local investment analyst society."

C、"Because of her extensive training,Paula will be able to achieve better investment results than managers who have not been awarded the CFA designation."

A．98.65

B．101.36

C．106