CFA Level 1 CFAI Mock (AM) Exam I Q &
A.
Can you initiate coverage on a company that is a potential client? - Correct Answer Yes
- as long as the recommendation is not unjustifiably favorable
Tender Offers - Correct Answer Mat., non-pub info -> can't use!
To be GIPS compliant, a firm must adopt: - Correct Answer the broadest definition of
the firm
*presented annually, to all clients
Do you have to reveal referral fees even if $ isn't actually exchanged? - Correct Answer
yes (duh)
Remember: if there is total disregard for ethics from BOTH your boss and compliance,
you are recommened to - Correct Answer quit the job
For 3rd party research.. - Correct Answer you must do due diligence
the width of a conf. interval for a pop. mean is smaller if the sample size is: - Correct
Answer larger and the degree of conf. is lower
if the given p-value is greater than the level of significance - Correct Answer the null
hyp. cannot be rejected
to get the compound ROR, use the - Correct Answer geometric mean
exhaustive events - Correct Answer when all possible outcomes are covered
Bayes Formula = - Correct Answer P(event / information) = P (information / Event) /
P(information)) x P(Event)
If the prices of substitute resources decreas, the demand for a given resource will most
likely - Correct Answer decrease
*a dec. in the price of a sub. would induce consumers to use the sub. good, reducing
demand for the good in question
