Level II– 模考一
Questions 1-6 relate to Ethics ..........................................................................................................................2 Questions 7-12 relate to Ethics .......................................................................................................................6 Questions 13-18 relate to Quantitative ........................................................................................................9 Questions 19-24 relate to Financial Reporting Analysis ..................................................................... 12 Questions 25-30 relate to Financial Reporting Analysis ..................................................................... 15 Questions 31-36 relate to Equity ................................................................................................................. 19 Questions 37-42 relate to Equity ................................................................................................................. 23 Questions 43-48 relate to Fixed-income .................................................................................................... 27 Questions 49-54 relate to Derivative .......................................................................................................... 31 Questions 55-60 relate to Portfolio Management .................................................................................. 34
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Level II– 模考一
Questions 1-6 relate to Ethics Case 1: Carlyle
Lindsey Carlyle, CFA is a research analyst with Woodstock Brothers (Woodstock), a division of the Woodstock Group. Woodstock is a full service brokerage and investment firm. The Woodstock Group and all of its divisions have adopted the CFA Institute’s Code of Ethics and Standards of Professional Conduct. Carlyle is writing a research report on Paladin Shippers (Paladin), a specialty transportation company. From time to time, several of Woodstock’s senior managers have served on the Board of Directors of Paladin, although none of them currently serve on Paladin’s Board. Additionally, Woodstock’s investment banking division, separated by a Chinese wall from the research division, represented Paladin in their initial public offering several years ago.
Carlyle initiates coverage of Paladin with a “Strong Buy” recommendation for accounts with a high risk tolerance over the next six months. In the report she identifies the main factors she utilized in determining her recommendation. She does not mention the previous relationships Woodstock had with Paladin as they no longer exist. The report was approved by her supervisor before being disseminated to all clients with a high risk profile including Marietta Investments (Marietta) the asset management division of Woodstock Brothers.
Scott Robinson, CFA is a portfolio manager for Marietta. He started at Marietta as a junior analyst working his way up to his current position as a portfolio manager. When he first joined the portfolio management group he worked with the high growth equity team. Robinson now specializes in managing small cap value stocks for U.S. pension funds and a few high net worth individuals. Robinson knew Carlyle from his previous days in the research department. Based only on Carlyle’s recommendation, Robinson reviews the accounts under his management and purchases Paladin stock where suitable.
All of Robinson’s accounts have given him full discretion in managing their funds. Given his
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MOCK EXAM 模考一 Last Name: First Name: No: Date:
Level II– 模考一
decision to purchase Paladin, he determines the total number of shares that need to be purchased for all of his accounts and submits the block buy order to Marietta’s trading department. It takes several hours to fully execute the trades and the shares are allocated according to Marietta’s Trade Allocation Policy. The policy states, “Client accounts participating in a block trade shall receive the same execution price and be charged the same commission, if any. All trade allocations shall be made on a pro rata basis prior to or immediately following a partial or complete block trade.” As part of the block trade, Robinson purchases Paladin Shippers for a mutual fund he manages. Reviewing all the trades executed in the mutual fund is the responsibility of Renee Stevens, CFA, Marietta’s Chief Compliance Officer. Given Paladin’s rich valuation, she is concerned about Robinson’s purchase of the stock for the fund and requests he provide justification for the purchase. Robinson gives Stevens the following explanation:
“Subsequent to the “Strong Buy” recommendation from Woodstock Brothers research analyst Lindsey Carlyle, Paladin Shippers was purchased due to its excellent return profile and growth opportunities. While the purchase of what appears to be a large cap growth stock in a small cap value portfolio might be questionable, it fits nicely within the overall purpose and objectives of the fund. Additionally, the portfolio characteristics of the fund, even with the inclusion of Paladin, clearly place the fund in the small cap value style category.”
Following the end of month reporting, Robinson received an email from one of his clients questioning the purchase of Paladin for his portfolio. The client felt the purchase was not in compliance with his Investment Policy Statement. Robinson again reviews the client’s investment policy and prepares a response. He also plans to invite the client to an upcoming meeting he hopes to schedule with Carlyle to discuss her recommendation on Paladin.
Carlyle remains impressed with Paladin’s growth opportunities and attention to customer satisfaction. Robinson asks Carlyle to meet with several potential new clients for Marietta. He believes that demonstrating his direct access to Street research analysts will help him gain new clients. Several minutes prior to the start of the meeting Robinson introduces Carlyle to one of his existing clients. Carlyle reviews with them a recent conversation she had with the Paladin CFO regarding new growth opportunities which she plans to include in her next research report. Carlyle meets with Robinson’s potential clients and discusses the stock research process.
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CFA二级模考题2019L2_模考一_题目
