Question 17 of 50

According to the GIPS standards, which of the following best defines a composite?

Under GIPS, if a firm chooses to pursue verification, the verification must be performed:

Which of the following portfolios must be included in a GIPS-compliant composite?

Regarding the definition of a 'firm' for GIPS compliance, which statement is most accurate?

Under GIPS, a portfolio is considered 'nondiscretionary' if:

Which of the following is a key purpose of the GIPS standards?

According to Standard I(A) Knowledge of the Law, if a member believes that applicable laws and regulations conflict, the member must:

Standard I(B) Independence and Objectivity allows members to accept issuer-paid research under which condition?

A member violates Standard I(C) Misrepresentation if they:

Under Standard I(D) Misconduct, which of the following is most likely a violation?

According to Standard II(A) Material Nonpublic Information, the 'Mosaic Theory' allows analysts to:

Which action constitutes Market Manipulation under Standard II(B)?

Standard III(A) Loyalty, Prudence, and Care specifies that a manager of a pension fund owes loyalty to:

Under Standard III(B) Fair Dealing, when a change in investment recommendation occurs:

Standard III(C) Suitability requires an advisor to:

When presenting performance history under Standard III(D), a firm should:

Under Standard IV(A) Loyalty, a member planning to leave an employer must:

Standard IV(B) Additional Compensation Arrangements requires a member to:

If a supervisor knows that compliance procedures are inadequate and the firm refuses to correct them, Standard IV(C) requires the supervisor to:

Standard V(A) Diligence and Reasonable Basis requires analysts using third-party research to:

When communicating with clients under Standard V(B), members must:

Standard V(C) Record Retention recommends retaining records for a minimum of:

Under Standard VI(A) Disclosure of Conflicts, a member who owns shares in a company they recommend must:

Standard VI(B) Priority of Transactions states that:

Regarding Standard VI(C) Referral Fees, a member must:

Standard VII(A) Conduct as Participants in CFA Institute Programs prohibits:

Which of the following is an acceptable reference to the CFA designation under Standard VII(B)?

In the Capital Asset Pricing Model (CAPM), what does 'beta' measure?

Calculate the CAPM expected return given: Risk-free rate = 3 percent, Beta = 1.5, Market return = 10 percent.

The Sharpe ratio is calculated as:

Which risk measure is used in the denominator of the Treynor measure?

Jensen's alpha is defined as:

Calculate the geometric mean return for 3 periods with returns: 10 percent, -10 percent, 0 percent.

The correlation coefficient (rho) must fall within the range:

In the M-squared (M2) measure formula, the portfolio return is adjusted by:

Holding Period Return (HPR) is calculated as:

If a member receives a gift from a client, Standard I(B) requires:

Which of the following scenarios is a violation of Standard I(D) Misconduct?

A member posts on social media that a company has secured funding at a specific price when they know it is untrue (a 'joke'). This violates:

If a member learns of a company's drug trial success during a private meeting with management, this information is likely:

Allocating profitable trades to a personal account and losing trades to client accounts is a violation of:

Standard V(B) Communication with Clients requires that when a firm changes its fee calculation methodology:

Under GIPS, if an advertisement includes a claim of compliance, it must:

Total risk in a portfolio is defined as the sum of:

If two assets have a correlation of +1, the standard deviation of the portfolio is:

In the equation of the Capital Market Line (CML), the slope is represented by:

Standard III(A) Loyalty, Prudence, and Care requires members to:

Regarding Standard VI(C) Referral Fees, if a member pays a fee to a third party to secure a client:

Arithmetic mean return is calculated as: