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 33 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: 321:
In a pension plan, the duty of a fiduciary is to the ________.
Option A: Board of Directors.
Option B: none of these answers.
Option C: plan sponsor.
Option D: immediate supervisor.
Option E: plan participants and their beneficiaries.
Show/Hide Answer
Option E : plan participants and their beneficiaries.
In a pension plan, the duty of the fiduciary is to the plan participants and their beneficiaries rather than to the plan sponsor that has the power to hire and fire the investment manager. If urged to make investments that might be of direct benefit to a sponsoring community or to the community at large, the manager must ensure that such investments are legal and do not impair the integrity of the funds in question or the financial security of the participants/beneficiaries.
CFA Level 1 Exam Question No: 322:
The stated purposes of Standard IV (B) (8), Disclosure of Referral Fees, are to:
I. Help the customer or client evaluate the full cost of the services.
II. Help the customer or client evaluate any possible partiality.
III. Help the customer or client evaluate potential conflicts of interest as a result of the participation of immediate family in transactions.
Option A: I only.
Option B: II only.
Option C: III only.
Option D: I and II only.
Option E: II and III only.
Option F: I and III only.
Option G: I, II and III.
Show/Hide Answer
Option D: I and II only.
This question relates to Standard IV (B.8), Disclosure of Referral Fees. Statements I & II give the two primary reasons listed in the Standards of Practice Handbook for disclosing referral fees to clients. The purpose given in Statement III is not a primary consideration.
Free CFA Level 1 Mock Exam Question No: 323:
Real estate must be valued through an independent appraisal at least ________ unless client agreements state otherwise.
Option A: once every five years.
Option B: once every year.
Option C: once every three years.
Option D: once every two years.
Show/Hide Answer
Option C : once every three years.
Real estate must be valued through an independent appraisal at least once every three years unless client agreements state otherwise. Real estate valuations must be reviewed at least quarterly. This is a requirement for calculation of returns.
CFA Level 1 Free Practice Question No: 324:
Which of the following can be found in Standard IV?
Option A: Members shall not participate in any professional conduct involving dishonesty, fraud, deceit, etc.
Option B: Members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.
Option C: Members shall not knowingly participate or assist in any violation of laws, rules, or regulations.
Option D: Members shall deliver a copy of the Code to their employer.
Option E: Members shall not misrepresent investment performance.
Show/Hide Answer
Option B : Members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.
Standard IV states that members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.
Free CFA Practice Question No: 325:
Serena Zaltz is a portfolio manager at Katalina Investments, a small boutique in Connecticut. She currently manages 3 client accounts, one of which belongs to John Hersham. John recently told Serena that if his portfolio beat the S8.500 by 75 basis points over the next 3 months, he would give 10 basis points to her as a “superior performance reward.” Serena told him this was unnecessary but John insisted that such an arrangement be made on a handshake. Serena subsequently spoke to her supervisor, Helena, about it and Helena did not object to the arrangement. Then, Serena has:
Option A: has violated Standard IV (A.3) – Independence and Objectivity.
Option B: has violated Standard III (D) – Disclosure of Additional Compensation Arrangements.
Option C: not violated any code of conduct.
Option D: has violated Standard IV (B.8) – Disclosure of Referral Fees.
Show/Hide Answer
Option B : has violated Standard III (D) – Disclosure of Additional Compensation Arrangements.
While Serena may have informed her employer orally about her additional compensation arrangement, Standard III (D) requires written notification to the employer and this includes any form of communication that can be documented. Such written disclosures act as paper trails of all such arrangements and act as a deterrent to such arrangements except in the more compelling cases.
CFA Level 1 Sample Question No: 326:
Standard IV (B.5) is known as _________.
Option A: None of these answers.
Option B: Preservation of Confidentiality.
Option C: Fair Dealing.
Option D: Investment Process.
Option E: Duty to Employer.
Option F: Interactions with Clients and Prospects.
Option G: Prohibition against Use of Material Nonpublic Information.
Option H: Professional Misconduct.
Show/Hide Answer
Option B : Preservation of Confidentiality.
Standard IV (A) deals with the Investment Process. Standard III (B) deals with Duty to Employer. Standard IV (B.3) deals with Fair Dealing. Standard IV (B) deals with Interactions with Clients and Prospects. Standard V (A) deals with Prohibition against Use of Material Nonpublic Information. Standard IV (B.5) deals with Preservation of Confidentiality. Standard II (B) deals with Professional Misconduct.
Free CFA Level 1 Quiz Question NO: 327:
Carl Pagan lives in Mesopotamia, where insider trading is not considered a crime. His friend, Ann Dreen, lives in Gondwana, where an investment professional must report any knowledge of criminal activity to the appropriate authorities. The AIM code of ethics bars insider trading but does not require one to report criminal activity to authorities. With regard to insider trading, Carl must follow ________ and with respect to reporting of criminal activity, Ann must follow _________.
Option A: Meesapotamian law; AIMR code.
Option B: AIMR code; Gondwana law.
Option C: Meesapotamian law; Gondwana law.
Option D: AIMR code; AIMR code.
Show/Hide Answer
Option B : AIMR code; Gondwana law.
A member must always abide by the AIM code, unless the local laws in any given case are stricter, in which case, the stricter standard applies. Standard I.
Free CFA Level 1 Quiz Question NO: 328:
Which of the following is/are true about insider trading laws?
I. Corporations cannot discriminate amongst recipients without risking insider trading liability.
II. Information provided to a group of analysts remains non-public till it is made available to investors in general.
III. If a member receives inside information that he deems material, the member must disseminate the information to the public as soon as possible and not trail on it to avoid insider trading charges.
Option A: I only.
Option B: I & II.
Option C: I, 11 & 111.
Option D: 11 & III.
Show/Hide Answer
Option B : I & II.
If a member receives inside information that he deems material, the member must: a. refrain from making decisions based on the information. b. encourage the firm to make the information publicly available. However, because the information is confidential, the member cannot unilaterally choose to broadcast it to the public. Indeed, he has an obligation not to personally disclose the information to an outsider.
Free CFA Practice Question No: 329:
Which of the following can be found in Standard V?
Option A: Members shall not participate in any professional conduct involving dishonesty, fraud, deceit, etc.
Option B: Members shall deliver a copy of the Code to their employer.
Option C: Members shall not misrepresent investment performance.
Option D: Members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.
Option E: Members shall not knowingly participate or assist in any violation of laws, rules, or regulations.
Show/Hide Answer
Option C : Members shall not misrepresent investment performance.
Standard V states that members shall not make any statements that misrepresent the investment performance that they or their firms have accomplished or can reasonably be expected to achieve.
CFA Mock Exam Free Question No: 330:
The AIM Performance Presentation Standards are
Option A: voluntary standards for the industry.
Option B: mandatory for CFA Charterholders and Candidates.
Option C: voluntary standards for the industry, but mandatory standards for AIM members.
Option D: mandatory standards for the industry.
Show/Hide Answer
Option A : voluntary standards for the industry.
The AIMR-PPS are voluntary standards for the industry. Firms are not required to comply with the Standards when presenting performance, but the Standards are widely recognized as the most effective guidelines for fair and accurate reporting of investment performance.
