Tài liệu Correct Answers Mock Exam 01 ppt

CFA MOCK EXAM 01 - 06/04/2008 -ANSWERS

Correct Answers
1) B 2) C 3) A 4) D 5) C 6) A 7) B 8) D 9) B 10) C
11) A 12) C 13) D 14) B 15) C 16) C 17) D 18) C 19) A 20) C
21) B 22) C 23) D 24) D 25) B 26) A 27) B 28) A 29) D 30) B
31) A 32) D 33) B 34) D 35) D 36) B 37) A 38) D 39) C 40) D
41) D 42) A 43) C 44) A 45) C 46) A 47) B 48) C 49) A 50) A
51) B 52) A 53) B 54) A 55) A 56) A 57) C 58) A 59) A 60) C
61) C 62) A 63) A 64) D 65) D 66) D 67) C 68) A 69) C 70) A
71) B 72) B 73) C 74) C 75) C 76) D 77) B 78) A 79) B 80) C
81) D 82) B 83) C 84) C 85) A 86) D 87) D 88) C 89) A 90) A
91) A 92) B 93) A 94) C 95) D 96) B 97) A 98) C 99) B 100) A
101) A 102) B 103) A 104) A 105) B 106) B 107) D 108) B 109) A 110) A
111) D 112) B 113) B 114) A 115) D 116) D 117) A 118) A 119) B 120) A
Answers
1) B
Although acting with humility may be desirable, AIMR members are not required to do so. However, they
should act in a manner that reflects credit on themselves and their profession.
2) C
I(B): Prohibition against assisting illegal and ethical violations. If you suspect someone is planning or
engaging in illegal activities you should:
1. Determine the legality of the activities. Consult your supervisor and legal counsel.
2. Take appropriate action. Dissociate, attempt to persuade the perpetrator to stop. AIMR does not
require you to report them to the authorities, but the law might.
3) A
Standard III(D) Disclosure says you must inform your supervisor of all additional compensation
arrangements. Standard IV(A.3) says you must maintain your independence and objectivity. You cannot
accept gifts designed to influence your behavior from non-clients. Accepting gifts from a client for past good
performance and accepting a gift from a client to achieve performance are allowed (although your manager
may not allow it). The standard differentiates between clients (those who hire you) and customers (those

you hire).
Page 1
CFA MOCK EXAM 01 - 06/04/2008 -ANSWERS

4) D
AIMR members, CFA charterholders, and CFA candidates are prohibited from misrepresenting their
services or qualifications and inappropriate assurances about any investment or its return.
5) C
Requirements in Return Calculations How to Construct a Composite:
Total returns.
Total weighted returns.
Accrual accounting
Asset weighted composites.
Cash and cash equivalents must be
included in composite returns.
Quarterly calculations minimum.
Geometric linking.
Deduct trading expenses.
All actual, fee paying discretionary portfolios must be included in
at least one composite.
Add new portfolios to a composite at the start of the next
measurement period.
Portfolios no longer under management should still be included in
the historical composite.
Portfolios should not be switched to a different composite unless
changes in guidelines make it reasonable.
Presentation: Disclosure. Must indicate:
10 year record. The availability of composite list.
Annual returns. The number of portfolios in composite.
Can't restate returns for firm changes. The amount of assets in composite.

Actual asset returns only. The definition of the firm.
Whether the results are gross or net of management fees.
A measure of dispersion.
6) A
7) B
The Code of Ethics governs only the conduct of members and individuals in the profession, not the conduct
of regulatory bodies. The fourth component of the AIMR Code of Ethics is to act with integrity, competence,
dignity, and in an ethical manner when dealing with the public, clients, prospects, employers, employees,
and fellow members.
8) D
AIMR’s Code and Standards dictate a minimum level of conduct. Standards should not be based on ethics
of upper management and the board of directors of a company. Firms must comply with the strictest
applicable standards, whether they be foreign or domestic laws and regulations.
Page 2
CFA MOCK EXAM 01 - 06/04/2008 -ANSWERS

9) B
The Code and Standards do not require members to report violations to legal authorities, but such
disclosure may be prudent in certain circumstances. They do not require members to quit their jobs or to
persuade violators to cease illegal activities. They do require that members report the activities to the
appropriate person(s) in their own firm and disassociate themselves from the illegal actions.
10) C
The charterholder may not make claims about the performance of CFA charterholders. They may follow
their name with the designation and describe, factually, the requirements for becoming a charterholder.
11) A
Standard II(B) states that members shall not engage in any professional conduct involving dishonesty,
fraud, deceit or misrepresentation or commit any act that reflects adversely on their honesty,
trustworthiness, or professional competence. Felony convictions with prison terms of one year or more, as
well as misdemeanors reflecting moral turpitude are in violation of the standard. A DUI conviction does not
reflect on moral turpitude, but persistent misdemeanor convictions reflect poorly on professional

competence.
12) C
When speaking with clients and prospects about research conducted by his own firm, an analyst need not
give explicit credit because the analyst is representing the firm. An analyst must give credit to the firm’s own
research staff in a professional witness situation because in such a situation, he is representing himself
rather than the firm.
13) D
The AIMR member is not required to notify her supervisor in writing of the Code and Standards if the
employer has publicly acknowledged in writing that they have adopted the AIMR Code and Standards.
Otherwise the member must notify the employer in writing.
14) B
The member is obligated to get written permission from his employer and the outside firm if he will be in any
way competing with his current employer. The member must also disclose the identity of their employer to
clients and prospective clients and the fact that they are performing independently of the employer, and
what their employer would charge for similar services.
15) C
Monetary compensation is not a requirement of the employee/employer relationship.
Page 3
CFA MOCK EXAM 01 - 06/04/2008 -ANSWERS

16) C
There is no obligation of employers to hold hearings when violations have occurred.
17) D
Brett must treat his mother’s account like any other of his clients’ accounts.
18) C
She is out of compliance on both counts–attempting to obtain a mass resignation of the management team
and misappropriating the client list.
19) A
The mode is the most frequent number: 62.
The median is half way from the top or bottom. The 19th number down is 65.

20) C
You must value weight the returns using beginning values.
(10/160)(100%) + (50/160)(20%) + (100/160)(10%) = .1875 = 18.75%
You could also just use beginning and ending portfolio values:
(190–160)/160 = 18.75%
21) B
To draw a box plot:
• Plot the median (That is the second quartile, half the numbers are above it and half are below it.)
• Plot the 1st quartile (That is the number below which 25% of the smallest numbers fall.)
• Plot the 3rd quartile (That is the number above which 25% of the largest numbers fall.)
• Box in the distance between the 1st and 3rd quartiles (This is called the interquartile range.)
• Plot the smallest and largest numbers (The range.)
Page 4
CFA MOCK EXAM 01 - 06/04/2008 -ANSWERS

• Plot out with a star the outliers (Those numbers falling outside 1.5 times the interquartile range.)
22) C
Mean = (.5)(.12) + (.3)(.1) + (.2)(.15) = .12
variance = Sum (wt)(return - mean return)
2
=
(.5)(.12-.12)
2
+ (.3)(.1-.12)
2
+ (.2)(.15-.12)
2
= .0003
Standard deviation = square root of .0003 = .017 or 1.7%
23) D

You must first solve for g.
g bear = (.1)(.6) = .06
g normal = (.15)(.4) = .06
g bull = (.3)(.3) = .09.
Now solve for the expected growth rate:
g = (.3)(.06) + (.4)(.06) + (.3)(.09) = .069 or 6.9%
24) D
First put your calculator in the BGN.
N=15; I/Y=8; PMT=100,000; CPT PV = 924,423.70.
Alternatively, do not set your calculator to BGN, simply multiply the ordinary annuity (end of the period
payments) answer by 1+I/Y. You get the annuity due answer and you don’t run the risk of forgetting to reset
your calculator back to the end of the period setting.
25) B
First, find the mean of the returns, then take differences and square them, add them up, divide by n-1
(called the variance) and take the square root of the variance to find the standard deviation.
Example for A: 16 + 20 + 12 = 48/3 = 16% average return.
16 – 16 = 02 = 0
20 – 16 = 42 = 16
12 – 16 = (-4)2 = 16
0 + 16 + 16 = 32/(3-1) = 16.5 = 4.0%
26) A
CV stock A = .14/.16 = 0.875
CV stock B = .03/.20 = 1.5
Stock A has less dispersion relative to the mean than Stock B.
Page 5
CFA MOCK EXAM 01 - 06/04/2008 -ANSWERS

27) B
The joint probability of a boom economy and an 80 percent return for Yacht Co. is 0.40 * 0.80 = 0.32.
28) A

N=40; I/Y=12; PMT=3,000; CPT FV = 2,301,274.26.
29) D
The Sharpe index for the growth portfolio is 1.45 - 0.30/10.8 = 0.10648.
The Sharpe index for the S&P 500 is 1.2 - 0.3/6.8 = 0.13235.
Thus, the S&P 500 has the higher Sharpe index, or greater excess return per unit of risk. However, you
cannot say that an investor would always prefer the S&P 500 relative to the growth portfolio, based on the
Sharpe ratio.
30) B
N=48; I/Y=7.5/12 = .625; PV=20,000; FV=0; CPT PMT = 483.58.
31) A
I. sample mean is ΣX / n = 20/5 = 4 not 20/4 = 5
II. standard error of the sample means is s/ square root of n = 1.5 / square root of 5 = .67
32) D
At the.05 level the critical Z-statistic is 1.96. You must know this.
H0: α = 10%, H1: α ≠ 10%, Z crit < Z calculated accept the alt.
33) B
I. The .01 level of confidence is 2.58 standard errors.
III. A type II error is wrongly accepting the null.
34) D
The student t distribution is not a normal distribution; it is less peaked than normal, resulting in “fatter tails”
than a normal distribution.
Page 6