CFA一级百题进阶：职业伦理.doc

1. ETHICS AND PROFESSIONAL STANDARDS Q-1. Grey recommends the purchase of a mutual fund that invests solely in long-term U.S. Treasury bonds. He makes the following statements to his clients: Statement 1: The payment of the bonds is guaranteed by the U.S. government; therefore, the default risk of the bonds is virtually zero. Statement 2: If you invest in the mutual fund, you will earn a 10 percent rate of return each year for the next several years based on historical performance of the market. Did Greys statements violate the CFA Institute Code and Standards? A. Neither statement violated the Code and Standards. B. Only Statement 1 violated the Code and Standards. C. Only Statement 2 violated the Code and Standards. Solution: C This question involves Standard I(C)—Misrepresentation. Statement 1 is a factual statement that discloses to clients and prospects accurate information about the terms of the investment instrument. Statement 2, which guarantees a specific rate of return for a mutual fund, is an opinion stated as a fact and, therefore, violates Standard I(C). If Statement 2 were rephrased to include a qualifying statement, such as in my opinion, investors may earn. . ., it would not be in violation of the Standards. 1-10 Q-2. Yao Tsang, CFA, has a large percentage of his net worth invested in the Australian mining company Outback Mines, which he has held for many years. Tsang is in the process of moving to a new employer where he will be responsible for initiating research on U.S. domestic mining companies. Shortly after his move, Tsang is asked to complete a research report on Outback Mines. In order to meet the CFA Institute Standards of Professional Conduct concerning his stock holding, which of the following is the most appropriate action for Tsang to take? A. Disclose his stock holding to his employer and to clients. B. Sell his stock holdings to eliminate any potential conflict of interest. C. Refuse to write the report and ask his employer to assign