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 Practice Test 15 Questions 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: 141:
Portfolios –
Option A : can be switched from one composite to another at any time at the discretion of the investment manager.
Option B : can never be switched from one composite to another, so managers must ensure they consult their clients and make appropriate choices.
Option C : must not be switched from one composite to another unless documented changes in client guidelines make switching appropriate.
Option D : can only be switched from one composite to another at the end of a performance period and only if documented changes in client guidelines make switching appropriate.
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Option C : must not be switched from one composite to another unless documented changes in client guidelines make switching appropriate.
Portfolios must not be switched from one composite to another unless documented changes in client guidelines make switching appropriate. This is a requirement for creation and maintenance of composites.
CFA Level 1 Exam Question No: 142:
To claim compliance, firms must meet
Option A: all composite, calculation, presentation and disclosure requirements of the AIMR Performance Presentation Standards.
Option B: all composite, calculation, presentation and disclosure recommendations of the AIR Performance Presentation Standards.
Option C: all composite, calculation, presentation and disclosure requirements and recommendations of the AIMR Performance Presentation Standards.
Option D: all composite, calculation, presentation and disclosure requirements and at least half of the recommendations of the AIMR Performance Presentation Standards.
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Option A : all composite, calculation, presentation and disclosure requirements of the AIMR Performance Presentation Standards.
To claim compliance, firms must meet all composite, calculation, presentation and disclosure requirements of the AIMR Performance Presentation Standards. Firms are also strongly encouraged to follow the recommended standards.
Free CFA Level 1 Mock Exam Question No: 143:
Which of the following statements is NOT correct?
Option A:All of these statements are correct.
Option B: Standards I through V contain principles guiding the general activities of members.
Option C: Members who work in a country where the Code and Standards impose a higher degree of responsibility than local laws and regulations must adhere to the Code and Standards.
Option D: Members are not required to report legal violations to the appropriate governmental or regulatory organizations.
Option E: Members who work in a country where the Code and Standards impose a lesser degree of responsibility than local laws and regulations must adhere to the local laws and regulations.
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Option B : Standards I through V contain principles guiding the general activities of members.
Standards I through V address specific conduct, while Standard I contains principles guiding the general activities of members. This distinction should be noted.
CFA Level 1 Free Practice Question No: 144:
Which of the following statements is true?
Option A: Standard I sets forth minimum standards relating to general activities.
Option B: All of these statements are correct.
Option C: Members are to be aware of laws and regulations of foreign jurisdictions.
Option D: Standards II through V address specific conduct.
Option E: Members who work in a country where the Code and Standards impose a lesser degree of responsibility than local laws and regulations must adhere to the local laws and regulations.
Option F: Members are to comply with the laws and regulations of foreign jurisdictions.
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Option B : All of these statements are correct.
All the statements are true. Standard I contains principles that apply to the general activities of members while Standards II-V address specific conduct. In addition to complying with the requirements of the Code and Standards, members must be aware of laws and regulations of foreign jurisdictions. When the Code and Standards impose a higher degree of responsibility than applicable securities laws, members must adhere to the Code and Standards and vice-versa.
Free CFA Practice Question No: 145:
An employee has a duty of _________ to his current employer, even if he has already disclosed plans to leave within the near future.
Option A: loyalty.
Option B: judgment.
Option C: none of these answers.
Option D: sagacity.
Option D: prudence.
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Option A : loyalty.
Standard III (B) states that a departing employee is free to make preparations to go into a competitive business before terminating the relationship with the employee’s current employer provided that such preparations do not breach the employee’s duty of loyalty.
CFA Level 1 Sample Question No: 146:
When complying with Standard IV (B.3) – Fair Dealing, a change of recommendation from “sell” to “buy” is considered:
Option A: none of these answers.
Option B: material only if so specified prior to the recommendation by the client.
Option C: not material.
Option D: material only if so specified prior to the recommendation by the investment manager.
Option E: generally material.
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Option E : generally material.
In general, a material change in a firm’s recommendation is one that could be expected to affect the investor’s judgment or motivate an informed buyer or seller to take an investment action.
Hence, a change of recommendation from “sell” to “buy” is generally material.
Free CFA Level 1 Quiz Question NO: 147:
The Performance Presentation Standards maintain that composites should cover a minimum of _______ Years, or present the entire record of the firm, if shorter.
Option A: ten.
Option B: eight.
Option C: seven.
Option D: two.
Option E: five.
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Option A : ten.
A 10 year performance record (or a record for the period since firm inception if inception is less than 10 years) must be presented.
Free CFA Level 1 Quiz Question NO: 148:
The ________ of portfolio performance over time is a measure of the variability or dispersion of the historical returns around their central tendency or mean return.
Option A: variance.
Option B: standard deviation.
Option C: mean-variance.
Option D: mode.
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Option B : standard deviation.
Standard deviation is also a useful measure of the relative volatility of fund categories.
Free CFA Practice Question No: 149:
_______ accounting is mandatory for fixed-income securities.
Option A: Flexible.
Option B: Risky.
Option C: Total.
Option D: Equal.
Option E: Accrual.
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Option E : Accrual.
Accrual accounting must be used for fixed-income securities and all other securities that accrue income. Accrued income must be included in the market value calculation of the denominator and numerator.
CFA Mock Exam Free Question No: 150:
Bronson provides investment advice to the board of trustees of a private university endowment fund. The trustees have provided Bronson with the fund’s financial information, including planned expenditures. Bronson receives a phone call on Friday afternoon from Murdock, a prominent alumnus, requesting that Bronson fax him comprehensive financial information about the fund. According to Murdock, he has a potential contributor but needs the information that day to close the deal and cannot contact any of the trustees. Based on AIMR Standards, Bronson should:
Option A: send Murdock the information because it is not material nonpublic information.
Option B: not send Murdock the information to preserve confidentiality.
Option C: Murdock the information, provided Bronson promptly notifies the trustees.
Option D: send Murdock the information because disclosure would benefit the client.
Show/Hide Answer
Option B : not send Murdock the information to preserve confidentiality.
This question deals with Standard IV (B. 1), Fiduciary Duties and Standard IV (B.5), Preservation of Confidentiality. Bronson owes a fiduciary duty to the fund trustees. He cannot disclose confidential financial information to anyone without the permission of the fund, regardless of whether the disclosure may benefit the fund. The fund must be notified and permission obtained before the information is publicized. Even if the information were nonmaterial, the member cannot disclose it because it is confidential.
