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Which of the following statements most accurately describes the obligations of investment managers related to the voting of proxies under the CFA Institute Asset Manager Code of Professional Conduct?
Robert Keith, CFA, has begun a new job at CMT Investments as Head of Compliance. Keith has just completed a review of all of CMT's operations, and has interviewed all the firm's portfolio managers. Many are CFA charterholders, but some are not. Keith intends to use the CFA Institute Code...
With regard to the treatment of clients in Norway and Denmark, do the policies that Bair has selected for the Quaker Fund violate any CFA Institute Standards of Professional Conduct?
Theresa Bair, CFA, a portfolio manager for Brinton Investment Company (BIC), has recently been promoted to lead portfolio manager for her firm's new small capitalization closed-end equity fund, the Quaker Fund. BIC is an asset management firm headquartered in Holland with regional offices in several other European countries. After accepting...
“The GIPS general provisions for real estate and for private equity require that both income and capital gains are included in the calculation and presentation of returns."
“The GIPS general provisions for real estate and for private equity require that both income and capital gains are included in the calculation and presentation of returns." Determine whether Rose's two comments on the GIPS standards are correct or incorrect.A . Only statement 1 is correct.B . Only statement 2...
Does the referral agreement between Fried and the tax consultant violate any CFA Institute Standards of Professional Conduct?
Dynamic Investment Services (DIS) is a global, full-service investment advisory firm based in the United States. Although the firm provides numerous investment services, DIS specializes in portfolio management for individual and institutional clients and only deals in publicly traded debt, equity, and derivative instruments. Walter Fried, CFA, is a portfolio...
Was McNulty's behavior at the holiday party a violation of a moral absolute?
Johnny Bracco, CFA, is a portfolio manager in the trust department of Canada National (CNL) in Toronto. CNL is a financial conglomerate with many divisions. In addition to the trust department, the firm sells financial products and has a research department, a trading desk, and an investment banking division. Part...
According to CFA Institute Standards of Professional Conduct, which of the following statements related to Green's investment recommendation to the large institutional client is TRUE?
The firm must increase the level of review or restriction of proprietary trading activities during periods in which the firm has knowledge of information that is both material and nonpublic. Bentley has identified two of Green's analysts, neither of whom have non-compete contracts, who are preparing to leave Federal Securities...
Did Ulster violate CFA Institute Standards of Professional Conduct by accepting either Phillips or West as new clients?
Dynamic Investment Services (DIS) is a global, full-service investment advisory firm based in the United States. Although the firm provides numerous investment services, DIS specializes in portfolio management for individual and institutional clients and only deals in publicly traded debt, equity, and derivative instruments. Walter Fried, CFA, is a portfolio...
Of the three scenarios (see Figure 2) presented to the Beeman Enterprises executives, which would represent the appropriate reaction to increasing the pension plan allocation to equity, if management wishes to maintain its current equity beta?
“The GIPS general provisions for real estate and for private equity require that both income and capital gains are included in the calculation and presentation of returns." Of the three scenarios (see Figure 2) presented to the Beeman Enterprises executives, which would represent the appropriate reaction to increasing the pension...
With respect to their plans to go into competition with Federal Securities, have Ybarra or Cliff violated any CFA Institute Standards of Professional Conduct?
The firm must increase the level of review or restriction of proprietary trading activities during periods in which the firm has knowledge of information that is both material and nonpublic. Bentley has identified two of Green's analysts, neither of whom have non-compete contracts, who are preparing to leave Federal Securities...
Harold Chang, CFA, has been the lead portfolio manager for the Woodlock Management Group (WMG) for the last five years. WMG runs several equity and fixed income portfolios, all of which are authorized to use derivatives as long as such positions are consistent with the portfolio's strategy. The WMG Equity Opportunities Fund takes advantage of long and short profit opportunities in equity securities. The fund's positions are often a relatively large percentage of the issuer's outstanding shares and fund trades frequently move securities prices. Chang runs the Equity Opportunities Fund and is concerned that his performance for the last three quarters has put his position as lead manager in jeopardy. Over the last three quarters, Chang has been underperforming his benchmark by an increasing margin and is determined to reduce the degree of underperformance before the end of the next quarter.
Harold Chang, CFA, has been the lead portfolio manager for the Woodlock Management Group (WMG) for the last five years. WMG runs several equity and fixed income portfolios, all of which are authorized to use derivatives as long as such positions are consistent with the portfolio's strategy. The WMG Equity...
