CFA三级十年真题 (2008-2017)：level_III_essay_questions_2011.docVIP

Level III Page 1 ? The Morning Session of the 2011 Level III CFA Examination has 9 questions. For grading purposes, the maximum point value for each question is equal to the number of minutes allocated to that question. Question Topic Minutes 1 2 3 4 5 6 7 8 9 Portfolio Management – Individual/Behavioral Portfolio Management – Individual Portfolio Management – Institutional Portfolio Management – Economics Portfolio Management – Asset Allocation Portfolio Management – Fixed Income Portfolio Management – Equity Investments Portfolio Management – Risk Management Portfolio Management – Performance Evaluation 15 23 26 23 20 19 22 16 16 Total: 180 Page 2 Level III THIS PAGE INTENTIONALLY LEFT BLANK ANY MARKS MADE ON THIS PAGE WILL NOT BE GRADED Level III Page 3 Questions 1 and 2 relate to the Becker family. A total of 38 minutes is allocated to these questions. Candidates should answer these questions in the order presented. QUESTION 1 HAS TWO PARTS (A, B) FOR A TOTAL OF 15 MINUTES. Robert Becker, age 75, retired 5 years ago from the building products business that he founded. After his business, Buildco, went public in the 1990’s, he remained as CEO and continued to hold shares in the company. After his wife’s death, Becker hires Emily Frost, a portfolio manager and trust specialist, to help with his estate planning. Becker establishes a revocable trust and an irrevocable trust. Income, realized capital gains, and estate assets (at death) are all taxed at a flat 20% rate. For the revocable trust, the cost basis of investments increases to the market value on the date of Becker’s death, and the assets are subject to estate taxes. For the irrevocable trust, the cost basis of investments does not change, and the assets are not subject to estate taxes. Currently, the two trusts each have 2.0 million U.S. dollars (USD) of their assets in Buildco shares, with a cost basis of USD 200,000 each. All Buildco shares have unrealized capital gains. Becker has the following two imme