Hi CFA Aspirants, welcome to AKVTutorials. Are you preparing for CFA Level 1, 2, 3 exams for making a career in CFA (Charted Financial Analyst). According to CFA Wikipedia, CFA The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the American-based CFA Institute. A candidate who successfully completes the program and meets other professional requirements is awarded the “CFA charter” and becomes a “CFA charter holder”. Therefore, you need CFA Study Notes and CFA Sample Exam Test 9 Questions for Level 59 Answer Keys AMBIPi
In this article, you will get Free CFA Level 1 Mock Exam Practice Questions.
Free CFA Level 1 Mock Practice Exam Questions Bank
Free CFA Level 1 Practice Question No: 581:
Mariam Musa, CFA, head of compliance at Dunfield Brokers, questions her colleague Omar Kassim, a CFA candidate and a research analyst, about his purchase of shares in a company for his own account immediately before he publishes a “buy” recommendation. He defends his actions by stating he has done nothing wrong because Dunfield does not have any personal trading policies in place. The CA Institute Standards of Professional Conduct were most likely violated by:
Option A : Only Kassim
Option B : Both Musa and Kassim
Option C : Only-Musa
Show/Hide Answer
Option B : Both Musa and Kassim
CFA Level 1 Exam Question No: 582:
Which of the following statements does not accurately represent the objectives of Global Investment Performance Standards (GIPS)? The GIPS standards:
Option A: Ensure consistent, accurate investment performance data in the areas of reporting, records[marketing, and presentations
Option B: obtain global acceptance of calculation and presentation standards in a fair, comparable format with full disclosure
Option C: Promote fair competition among investment management firms in all markets by requiring common fee structures
Show/Hide Answer
Option C : Promote fair competition among investment management firms in all markets by requiring common fee structures
Free CFA Level 1 Mock Exam Question No: 583:
James Simone, CFA, the chief financial officer of a publicly listed company, seeks to improve the quality of his company’s communication with institutional fund managers. He holds an investor briefing With this group the evening before the company earnings are announced. The company’s quarterly earnings are broadcast in a press release the next day before the market opens. The earnings information in the investor briefing is identical to that in the press release. Did Simone most likely violate the CFA Institute Standards of Professional Conduct?
Option A: Yes
Option B: No, because the company releases information while the market is closed
Option C: No, because investor briefing and press release information are identical
Show/Hide Answer
Option A : Yes
CFA Level 1 Free Practice Question No: 584:
Diana Fairbanks, CFA, is married to an auditor who is employed at a large accounting firm. When her husband mentions that a computer firm he audits will receive a qualified opinion, she thinks nothing of it. Later that week, when she reviews a new client account, she notices there are substantial holdings of this computer firm. When she does a thorough internet search for news on the company, she does not find anything about its most recent audit or any other adverse information. Which of the following actions concerning the computer stock should Fairbanks most likely take to avoid violating the Institute Standards of Professional Conduct?
Option A: Complete a thorough and diligent analysis of the company and then sell the stock
Option B: Sell the stock immediately because she has a reasonable basis
Option C: Take no investment action
Show/Hide Answer
Option C : Take no investment action
Free CFA Practice Question No: 585:
Margie Germaine, CFA, is a risk management consultant who has been asked by a small investment bank to recommend policies to prevent bank employees from front running client orders. These clients generally invest in one or more of the bank’s large cap equity unit trusts. To ensure compliance with the CFA Institute Standards of Professional Conduct, Germaine should least likely recommend which of the following? Employees should be restricted from trading:
Option A: equity-related securities
Option B: without prior permission
Option C: during established time periods
Show/Hide Answer
Option A : equity-related securities
CFA Level 1 Sample Question No: 586:
Molly Burnett, CFA, is a portfolio manager for a fund that only invests in environmentally friendly companies. A multinational utility company recently acquired one of the fund’s best-performing investments, a wind power company. The wind power company’s shareholders received utility company shares as part of the merger agreement. The utility has one of the worst environmental records in the industry, but its shares have been one of the top performers over the past 12 months. Because the utility pays a high dividend every three months, Burnett holds the utility shares until the remaining two dividends are paid for the year then sells the shares. Burnett most likely violated the CA Institute Standard of Professional Conduct concerning:
Option A: Disclosure of Conflicts
Option B: Suitability
Option C: Independence and Objectivity
Show/Hide Answer
Option B : Suitability
Free CFA Level 1 Quiz Question NO: 587:
John Meir, CFA, is a compliance officer for Family Estate Planning, LLC, a private wealth consulting firm. Many of his colleagues have family members who have started their own retail businesses. Some of Meir’s colleagues have beef asked by relatives to serve as non-executive directors or advisers to their companies. Meir should most likely recommend which of the following policies to ensure compliance with the CFA Institute Standards of Professional Conduct?
Option A: Require employees to declare all income sources annually
Option B: Require employees to declare all outside business interests
Option C: Prohibit employees from becoming directors or advisers
Show/Hide Answer
Option B : Require employees to declare all outside business interests
Free CFA Level 1 Quiz Question NO: 588:
Which of the following statements concerning requirements under Standard V(B) – Communication with Clients and Prospective Clients is least likely accurate? This standard requires members and candidates to:
Option A: divulge the number of investment-related personnel responsible for external communication
Option B: distinguish between n fact and opinion in the presentation of investment analysis and recommendations
Option C: disclose the basic format and general principles of the investment process
Show/Hide Answer
Option A : divulge the number of investment-related personnel responsible for external communication
Free CFA Practice Question No: 589:
Gabrielle Gabbe, CFA, has been accused of professional misconduct by one of her competitors. The allegations concern Gabbe’s personal bankruptcy filing 10 years ago when she was a college student and had a large amount of medical bills she could not pay. By not disclosing the bankruptcy filing to her clients, did Gabbe most likely Violate any CFA Institute Standards of Professional Conduct?
Option A: No
Option B: Yes, related to Misconduct
Option C: Yes, related to Misrepresentation
Show/Hide Answer
Option A : No
CFA Mock Exam Free Question No: 590:
Chan Liu, CFA, is the new research manager at the Pacific MicroCap Fund. Liu observed the following activities after she published a research report on a thinly traded micro-cap stock that included a “buy” rec commendation:
• Pacific traders purchased the stock for Pacific’s proprietary account and then purchased the same stock for all client accounts; and
• Pacific marketing department employees disseminated positive, but false, information about the stock in widely read internet forums
Liu notes the stock’s price increased more than 50% within a period of two days and was then sold for Pacific’s account. Which of the following steps is most appropriate for Liu to take to avoid violating the CFA Institute Standards of Professional Conduct?
Option A: Remove her name from the micro-cap stock research report
Option B: Publicly refute the false information posted on internet forums
Option C: Report the observed activities to her employer
Show/Hide Answer
Option C : Report the observed activities to her employer
