Question 28 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:

Standard III(E) Preservation of Confidentiality requires members to keep client information confidential unless:

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:

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: