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 Level 1 Mock Exam 6 Practice Questions Free 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: 51:
Pulser Primorak is an investment manager who recently bid in an IPO on behalf of his clients and was allowed to buy 1,000 shares of the issue. What should Primorak do?
Option A : He should distribute the IPO shares amongst the client accounts over which he has discretionary investment powers on a pro rata basis.
Option B : He should treat all his customers equally and fairly by distributing the IPO shares amongst all his client accounts on a pro rata basis.
Option C : He should distribute the IPO shares amongst all his client accounts for which the IPO is an appropriate investment on a pro rata basis.
Option D : The question is based on a false premise. Primorak should not have bid on an IPO in the first place since this violates the AIMR code of Ethics.
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Option C : He should distribute the IPO shares amongst all his client accounts for which the IPO is an appropriate investment on a pro rata basis.
Standard IV (B.3) – Fair Dealing. Note that the AIM code does not prohibit investments by portfolio managers in IPOs if they are deemed appropriate investments.
CFA Level 1 Exam Question No: 52:
Members pursuing the investment profession outside of the U.S. the Code and Standards when local regulations are less stringent in order to maintain a level playing field.
Option A: may disregard.
Option B: can modify.
Option C: should ignore
Option D: must adhere to
Show/Hide Answer
Option D : must adhere to
The concept of fiduciary duty is not exclusive to the United States. AIMR members are expected to follow any fiduciary duties imposed on them by their country or province, in addition to being governed by the Codes and Standards. As always, the primary concern must be to follow principles of discretion, loyalty and care and to act in the client’s best interest.
Free CFA Level 1 Mock Exam Question No: 53:
The AIMR Performance Presentation Standards require that firms report, at a minimum _____ .years of performance to claim compliance with the standards.
Option A: one.
Option B: fifteen.
Option C: five.
Option D: ten.
Option E: seven.
Option F: two.
Show/Hide Answer
Option D : ten.
The AIMR-PPS require that firms report, at a minimum, 10 years of investment performance (or performance since the inception of the firm if inception is less than 10 years) to claim compliance with the Standards.
CFA Level 1 Free Practice Question No: 54:
Which of the following AIM Standards states that the financial analyst shall distinguish between facts and opinions in research reports?
Option A: I A.
Option B: II D.
Option C: III (B. 1).
Option D: IV (A.2).
Show/Hide Answer
Option D : IV (A.2).
Standard IV (A.2) – Research Reports states: “Members shall distinguish between facts and opinions in research reports.”
Free CFA Practice Question No: 55:
Complete the following: According to The Code of Ethics, members of AIMR shall: “Practice and encourage others to practice in a professional and ethical manner that will ____ members and their profession.”
Option A: improve the qualifications of.
Option B: reflect credit on.
Option C: none of these answers.
Option D: improve the compensation of.
Option E: improve the access of.
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Option B : reflect credit on.
According to The Code of Ethics, members of AIMR shall:
“Practice and encourage others to practice in a professional and ethical manner that will reflect credit on members and their profession.
CFA Level 1 Sample Question No: 56:
Standard III (A) – Obligation to Inform Employer of Code & Standards – requires all AIMR members, Charterholders and CFA candidates inform their employers about their personal obligation to abide by the code. Which of the following is/are true in regard to this requirement?
I. The notification can be in either oral form or in writing, either in print, handwriting or by electronic means like email.
II. Notification is necessary even if the employer is publicly known to have adopted the Code of Ethics.
III. For compliance with Standard III (A), notification must be made to the immediate employer and not necessarily senior management.
Option A: III only.
Option B: I, II and III.
Option C: I and III only.
Option D: I and II only.
Show/Hide Answer
Option A : III only.
If the employer has publicly adopted the Code of Ethics, no explicit notification is required. Otherwise, the immediate supervisor must be informed in writing about the obligation to abide by the Code. “In writing” includes any form of communication that can be documented, including email. Refer Standard III (A) – Obligation to Inform Employer of Code & Standards.
Free CFA Level 1 Quiz Question NO: 57:
According to Standard IV (B.4), Priority of Transactions: “Transactions for clients and employers shall have priority over transactions in securities or other investments of which a member is the so that such personal transactions do not operate adversely to their clients’ or employer’s interests.”
Option A: material agent.
Option B: primary decision maker.
Option C: none of these answers.
Option D: proxy voter.
Option E: beneficial owner.
Option F: principal broker.
Option G: sole charter holder.
Option H: registered representative.
Show/Hide Answer
Option E : beneficial owner.
Standard IV (B.4) deals with the Priority of Transactions. Under this standard, transactions for clients and employers shall have priority over transactions in securities or other investments of which a member is the beneficial owner so that such personal transactions do lot operate adversely to their clients’ or employer’s interests. If members make a recommendation regarding the purchase or sale of an investment, they shall give their clients and employer adequate opportunity to act on the recommendation before acting on their own behalf.
Free CFA Level 1 Quiz Question NO: 58:
According to the AIMR-PPS, total firm assets are defined to include
Option A: all discretionary and nondiscretionary assets, as well as assets underlying overlay investment strategies.
Option B: all discretionary and nondiscretionary assets.
Option C: any asset deemed eligible by the firm.
Option D: only assets underlying overlay investments strategies.
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Option B : all discretionary and nondiscretionary assets.
Total firm assets are defined to include all discretionary and nondiscretionary assets. Total firm assets do not refer to assets underlying overlay investment strategies, such as currency overlay, options and futures overlays, securities lending programs and asset allocation overlay strategies, unless the firm actually manages the underlying assets.
Free CFA Practice Question No: 59:
Standard V (B) addresses any practice that would lead to misrepresentation of a member’s record, whether the practice involves performance or performance
Option A: presentation; measurement.
Option B: none of these answers.
Option C: presentation; benchmarking.
Option D: assessment; benchmarking.
Option E: measurement, assessment.
Option F: assessment, presentation.
Option G:benchmarking; measurement.
Show/Hide Answer
Option A : presentation; measurement.
Standard V (B) addresses any practice that would lead to misrepresentation of a member’s record, whether the practice involves performance presentation or performance measurement.
CFA Mock Exam Free Question No: 60:
Mayberry’s Mayor, in consultation with the trustees of Mayberry’s Village investment Fund, has decided that the fund needs to become more aggressive in its investment objectives to generate funds for village renovations like a paved road, a new school and an activity center for kids. He discussed these requirements with the plan manager, Otis, and asked him to suggest a suitable risk profile and investment instruments to achieve the objectives within a year. Barney, a businessman from a neighboring town, is trying to decide if he should invest his excess capital in setting up businesses in Mayberry or another town, Februberry. These businesses promise to generate about 35 new jobs at various levels and stimulate consumer spending in the town in which they are set up. Barney wants to be sure that the businesses are set up in areas that have high growth promise. So he calls up Otis to find out about the Mayor’s plans for the next two years for Mayberry’s development. Otis sets up a meeting with Barney and outlines the proposed renovation projects. Otis does his best to convince Barney that Mayberry is the right place for Barney’s businesses.
I. Barney has violated the Code of Ethics by discussing the plans with Otis.
II. Otis has violated the Code of Ethics by discussing the plans with Barney.
III. Neither Bamey nor Otis violated any standards.
Option A: II only
Option B: III only.
Option C: I and II only
Option D: I only.
Show/Hide Answer
Option A : II only
Otis has violated Standard IV (B.5) – Preservation of Confidentiality by revealing the Mayor’s plans to Barney. Any information that Otis receives in his capacity as a fund manager is strictly confidential and should not be revealed unless it is in connection with a criminal investigation or an AIMR investigation.
Barney has not violated any Standards.
