Free CFA Level 1 Mock Exam Test 3 Questions Bank Answer Keys AMBIPi

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 Free CFA Level 1 Mock Exam Test 3 Questions Bank 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: 21:

Standard II (A) deals with

Option A : Obligation to Inform Employer of Code and Standards.

Option B : None of these answers.

Option C : Professional Misconduct.

Option D : Plagiarism.

Option E : Use of Professional Designation.

Option F : Duty to Employer.

Option G : Disclosure of Conflicts to Employer.

Option H : Fundamental Responsibilities.

Show/Hide Answer

Option E : Use of Professional Designation.

Standard I deals with Fundamental Responsibilities. Standard II (A) deals with Use of Professional Designation. Standard II (B) deals with Professional Misconduct. Standard II (C) deals with Plagiarism. Standard III (A) deals with the Obligation to Inform Employer of Codes and Standards. Standard III (B) deals with the Duty to Employer. Standard III (C) deals with Disclosure of Conflicts to Employer.

CFA Level 1 Exam Question No: 22:

Which of the following is/are true about the PPS?

I. Accounts of clients that are not currently under the firm’s management should not be included in the presentation of the historical performance results.

II. Compliance with PPS cannot be met on a composite-by-composite basis, only on a firm-wide basis.

III. The PPS require that firms report, at a minimum, at least the most recent 5 years (or since inception, if less than 5 years) of performance results.

Option A: III only.

Option B: I only.

Option C: I and III only.

Option D: II only.

Option E: I, II and III.

Option F: I and II only.

Option G: II and III only.

Show/Hide Answer

Option D : II only.

The PPS require that firms report, at a minimum, at least the most recent 10 years (or since inception, if less than 10 years) of performance results. If this requirement cannot be met, exact reasons for this should be disclosed. Historical results should be presented as is to give a fair representation of past performance. Dropping portfolios selectively can bias the results. Also, Compliance with PPS cannot be met on a composite-by-composite basis, only on a firm- wide basis.

Free CFA Level 1 Mock Exam Question No: 23:

Which of the following can be found in Standard III? 

Option A: Members must use the CFA designation in a dignified manner.

Option B: If members receive material nonpublic information in confidence, they shall not breach that confidence by trading or causing others to trade in securities to which such information relates.

Option C: Members shall maintain knowledge of AIR’s Code of Ethics.

Option D: Members shall comply with any prohibitions on activities imposed by their employer if a conflict of interest exists.

Option E: Members shall make reasonable and diligent efforts to avoid any material misrepresentation in any research report or investment recommendation.

Show/Hide Answer

Option D : Members shall comply with any prohibitions on activities imposed by their employer if a conflict of interest exists.

Standard III states: “Members shall comply with any prohibitions on activities imposed by their employer if a conflict of interest exists.

CFA Level 1 Free Practice Question No: 24:

Which of the following can be found in Standard II?

Option A: Members shall make reasonable and diligent efforts to avoid any material misrepresentation in any research report or investment recommendation.

Option B: Members must use the CFA designation in a dignified manner.

Option C: Members shall comply with any prohibitions on activities imposed their employer if a conflict of interest exists.

Option D: Members shall maintain knowledge of AIMR’s Code of Ethics.

Option E: If members receive material nonpublic information in confidence, shall not breach that confidence by trading or causing others to trade securities to which such information relates.

Show/Hide Answer

Option B : Members must use the CFA designation in a dignified manner.

Standard II states that holders of the CFA designation may use it, but only in a dignified and judicious manner. The use of the designation may be accompanied by an accurate explanation of the requirements that have been met to obtain the designation.

Free CFA Practice Question No: 25:

Which of the following is/are forms of plagiarism as defined by AIM code of conduct ?

1. Using material from a seminar in research reports without proper acknowledgment.

II. Presenting statistical estimates prepared by others without the associated caveats and qualifiers.

III. Using of information obtained in a teleconference without identifying the original source. 

IV. Using Standard & Poor’s estimates of stock betas without attribution.

Option A: I, II and IV only.

Option B: I, II and III only.

Option C: II, III and IV only.

Option D: II and III only.

Show/Hide Answer

Option B : I, II and III only.

Standard II (C) – Prohibition against Plagiarism – considers a use of factual information published by recognized financial and statistical services without attribution acceptable. All of the others are forms of plagiarism and violations of Standard II (C).

CFA Level 1 Sample Question No: 26:

Firms with records or performance calculations for periods prior to the applicable effective date(s) that are not in conformance with the AIMR Performance Presentation Standards can still claim compliance with the standards if certain conditions are met. Which of the following is an option available to such a firm?

Option A: None of these answers are options available to such a firm.

Option B: All of these answers are options available to such a firm.

Option C: The firm can restate its historical performance in accordance with the Relaxed Retroactive Standards for retroactive compliance.

Option D: The firm can use its nonconforming historical performance and disclose specifically when and how the performance is not in compliance.

Option E: The firm can restate its historical performance numbers in accordance with the Standards.

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Option B : All of these answers are options available to such a firm.

Firms with records or performance calculations for periods prior to the applicable effective date(s) that are not in conformance with the Standards can choose any of the options listed.

Free CFA Level 1 Quiz Question NO: 27:

When formulating an investment policy for a client, all of the following fall under “investor constraints,” except

Option A: liquidity needs.

Option B: regulatory and legal circumstances.

Option C: risk tolerance.

Option D: tax considerations.

Option E: expected cash flows.

Option F: investable funds.

Option G: investor preferences, circumstances and unique needs.

Option H: none of these answers.

Show/Hide Answer

Option C : risk tolerance.

Risk tolerance is considered under “Investor objectives.”

Free CFA Level 1 Quiz Question NO: 28:

Which of the following can be found in Standard I?

Option A: Members shall deliver a copy of the Code to their employer.

Option B: Members shall not participate in any professional conduct involving dishonesty, fraud, deceit, etc.

Option C: Members shall not knowingly participate or assist in any violation of laws, rules or regulations.

Option D: embers shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.

Option E: Members shall not misrepresent investment performance.

Show/Hide Answer

Option C : Members shall not knowingly participate or assist in any violation of laws, rules or regulations.

Standard I states that members shall: “A. Maintain knowledge of and comply with all applicable laws of any governing agency or professional association governing the member’s professional activities, and B. Not knowingly participate or assist in any violation of laws, rules or regulations.

Free CFA Practice Question No: 29:

AIMR Standard

Option A: I (D).

Option B: IV (A).

Option C: None of these answers.

Option D: II (C).

Option E: III (B).

Show/Hide Answer

Option D : II (C).

Standard II (C) – Prohibition against Plagiarism states: “Members shall not copy or use, in substantially the same form as the original, material prepared by another without acknowledging and identifying the name of the author, publisher, or source of such material. Members may use, without acknowledgment, factual information published by recognized financial and statistical reporting services or similar sources.’

CFA Mock Exam Free Question No: 30:

Fiduciaries are obligated to vote proxies:

Option A: none of these answers.

Option B: on an “as needed” basis, depending on the issue at hand.

Option C: only when there is a nonroutine governance issue.

Option D: only when there is a change in firm capitalization.

Option E: in an informed and responsible manner.

Option F: only when management requests the fiduciary to vote, in writing.

Show/Hide Answer

Option E : in an informed and responsible manner.

As part of a fiduciary’s duty of loyalty, they are obligated to vote proxies in an informed and responsible manner. A fiduciary who fails to vote, casts a vote without considering the impact of the question or votes blindly with management on non-governance issues may violate this duty of loyalty.

CFA Notes Materials and QBanks

CFA Level 1 Notes
CFA Level 1 QBank: 1 to 10CFA Level 1 QBank: 11 to 20
CFA Level 1 QBank: 21 to 30CFA Level 1 QBank: 31 to 40
CFA Level 1 QBank: 41 to 50CFA Level 1 QBank: 51 to 60
CFA Level 1 QBank: 61 to 70CFA Level 1 QBank: 71 to 80
CFA Level 1 QBank: 81 to 90CFA Level 1 QBank: 91 to 100
CFA Level 1 QBank: 101 to 110CFA Level 1 QBank: 111 to 120
CFA Level 1 QBank: 121 to 130CFA Level 1 QBank: 131 to 140
CFA Level 1 QBank: 141 to 150CFA Level 1 QBank: 151 to 160
CFA Level 1 QBank: 161 to 170CFA Level 1 QBank: 171 to 180
CFA Level 1 QBank: 181 to 190CFA Level 1 QBank: 191 to 200
CFA Level 1 QBank: 201 to 210CFA Level 1 QBank: 211 to 220
CFA Level 1 QBank: 221 to 230CFA Level 1 QBank: 231 to 240
CFA Level 1 QBank: 241 to 250CFA Level 1 QBank: 251 to 260
CFA Level 1 QBank: 261 to 270CFA Level 1 QBank: 271 to 280
CFA Level 1 QBank: 281 to 290CFA Level 1 QBank: 291 to 300
CFA Level 1 QBank: 301 to 310CFA Level 1 QBank: 311 to 320
CFA Level 1 QBank: 321 to 330CFA Level 1 QBank: 331 to 340
CFA Level 1 QBank: 341 to 350CFA Level 1 QBank: 351 to 360
CFA Level 1 QBank: 361 to 370

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