CFA一级Mock试题.doc

１. According　to the ＣFA　Ｉnｓtiｔutｅ Cｏde　oｆ Etｈics ａnd Stａｎdarｄs　ｏf　Profｅssioｎａl　Conｄuct, tｒaｄｉnｇ oｎ ｍａｔerｉaｌ nｏnpubｌｉc　ｉｎforｍａtion　iｓ　lｅａｓｔ lｉkely　ｔo be prｅvented bｙ eｓｔablishiｎg:
A. fiｒｅ-ｗalls．　
Ｂ. watcｈ lisｔs.　
C． sｅlecｔiｖe dｉsｃloｓurｅ.
Answer: C
CＦA Institｕtｅ Ｓｔanｄaｒds
Moｄulａｒ Ｌevｅl I,　Voｌ. 1，　pp． ３6-42
Sｔudy Sessｉon 1-2－ｃ
Ｒecomｍｅnd pｒacｔｉcｅs and procedurｅｓ　deｓigned ｔo ｐrｅvent viｏlaｔiｏns oｆ tｈｅ　Cｏｄe　oｆ Ｅthiｃs ａnｄ Ｓtaｎdａrds ｏf Profｅsｓionaｌ　Conducｔ
Ｃ ｉs　correｃt ａs　ｓelective ｄｉsclｏsuｒe ｏcｃuｒｓ wheｎ compaｎies　disｃriｍiｎａte　in maｋing mａｔｅｒiaｌ noｎｐｕbｌic infｏrmaｔioｎ　ｐubｌic. Coｒｐｏratｉｏｎs　that ｄiｓclose　informatｉoｎ on　a　ｌimited basis crｅatｅ the pｏｔｅnｔiaｌ fｏr inｓider－traｄｉng ｖｉｏｌaｔｉｏns.　Ｓtａndaｒｄ ＩI （A）.

２． Ｗiｌliam　Wｏnｇ, ＣFA， is ａｎ　equｉｔy　analｙｓt wｉth　Hayswicｋ Ｓeｃurｉｔｉｅs. Ｂaｓｅd　oｎ hiｓ ｆunｄamental aｎａlysis,　Wｏｎｇ ｃoncluｄｅｓ the　sｔocｋ ｏｆ ａ coｍｐａｎy he ｆｏｌｌows, Nｏlｖｅｃ　Iｎｃ.,　ｉｓ　suｂsｔaｎtiallｙ uｎｄｅrｖaｌued ａｎd　ｗiｌl eｘｐerｉenｃe a lａrｇe pｒicｅ　inｃrｅａｓe.　He ｄelａyｓ ｒevisinｇ his reｃoｍmｅndａtion　on　the　ｓtoｃｋ frｏm　“hoｌd”　ｔｏ “bｕy” ｔo allow his　brotｈｅｒ ｔo buy sｈaｒes　at　a　lｏwer　ｐｒiｃe. Wonｇ iｓ　ｌeaｓt　lｉkｅlｙ　to havｅ　ｖiolaｔeｄ　the CFA Ｉnｓtiｔute Standardｓ　of Profｅssｉoｎaｌ　Ｃonｄuｃt　rｅｌaｔｅd ｔｏ:
A.　dｕty ｔｏ clｉeｎts.　
Ｂ. rｅaｓoｎaｂle　ｂａｓiｓ．
C. prioｒity ｏf tｒansａｃｔions.
Answer:　B　
“Guｉdance　foｒ Standａｒds Ｉ-ＶII”,　ＣFA　Ｉｎstｉtute
Moｄular Leveｌ Ｉ,　Vｏl． 1， pｐ． 4８-５０, ８0-8１,　94-95
Study　Ｓｅｓsioｎ 1－2－a
Dｅmonsｔraｔｅ a tｈorｏuｇh ｋnowｌedge　of the　Codｅ ｏf Ethics and　Standarｄｓ　of　Pｒofeｓsｉｏnａl　Conｄuｃt　bｙ　apｐlyiｎg the Ｃode anｄ Ｓｔaｎdaｒdｓ tｏ　situaｔions inｖｏlviｎｇ ｉssｕes oｆ proｆessional iｎｔegrｉｔｙ．　
Ｂ　ｉs corｒｅｃt beｃauｓｅ theｒｅ　iｓ　notｈinｇ to sｕgｇesｔ tｈat Ｗong　ｄｏes not hａve a reasonａｂlｅ bａsis　foｒ　ｈis conclｕsiｏn　ｒelａｔｅd to　Nolvｅc. Sｔandａrd V　(A).

３． During ａn ｏｎsｉte　cｏmpanｙ　visit, Mａrsｈa　Ｗard， CFＡ, acciｄｅｎtａlly ｏverheａrd the　Chｉeｆ Eｘecuｔiｖe　Ofｆiｃer (CEＯ) ｏｆ　Starｇaｚｅr,　Ｉnc. discussing the compaｎy’s tenｄｅr offer ｔo　puｒchase Dynａmiｃa　Enｔｅrpｒiseｓ, a reｔaiｌｅr of Ｓtaｒｇａzｅr prｏductｓ. Acｃorｄing　to tｈｅ CFA　Ｉｎstｉtutｅ Sｔａｎdarｄs ｏf　Proｆｅｓｓiｏnal　Conducｔ,　Ward most　likｅlｙ can noｔ uｓe tｈｅ iｎｆoｒｍaｔiｏn becａuse:

Ａ. ｉt ｒｅlａｔes ｔo a tender ｏffer．　
B.　ｉｔ　was overhearｄ ａｎｄ miｇｈｔ be　consiｄeｒｅd　unｒelｉabｌe．
C.　ｓhe　doｅs　not　ｈaｖe　ａ rｅaｓｏnａｂｌe and ａdｅｑuａte basis　for　ｔakｉng investｍenｔ actｉｏn.　
Ansｗer: A
“Gｕiｄａnce fｏr Ｓtandａrds　Ｉ－VＩＩ”, CFＡ Iｎsｔiｔute　
Mｏduｌar　Ｌeｖel Ｉ, Voｌ.　1, pp. 3６－42　
Stuｄy　Ｓｅssｉoｎ １－2-a
Ｄeｍonｓtratｅ a　tｈorouｇh ｋnoｗｌeｄｇe　oｆ　thｅ Code of　Ethｉcｓ ａnd Staｎdaｒds oｆ Prｏｆｅｓsｉｏｎａl　Cｏｎｄuｃｔ bｙ　apｐlｙiｎg ｔｈe Cｏｄｅ and Standａｒdｓ to ｓituａtｉons iｎvｏlvｉnｇ ｉssuｅs of proｆｅｓsiｏnal ｉntegrｉｔy.
A iｓ　corｒｅct beｃause tｒａｄing on thｅ　ｉnｆoｒｍatｉon　ｉｓ restricｔed　as it　reｌatｅｓ ｔｏ　a tｅnｄｅｒ ofｆeｒ。　ｉt ｉs cｌｅａrly　ｍａterial,　ｎonｐubｌic iｎｆｏrmatｉon．　Sｔａnｄａrd　IＩ （A)．

４. Ｉan O’Sullｉvan， CFＡ, ｉｓ　tｈｅ owner aｎｄ sｏle emｐlｏｙee of two compaｎies， a ｐubｌｉc rｅlations ｆｉrｍ ａnｄ a fiｎａｎｃiaｌ ｒeseaｒch ｆｉrm. Ｔhｅ　ｐｕblic ｒｅｌａtｉons fiｒｍ　eｎｔered ｉnto a ｃontraｃt with　Maｌｌｏrｙ Entｅrprｉsｅs ｔo pｒovｉdｅ public　reｌaｔionｓ seｒｖices, ｗiｔh O’Ｓｕlｌｉvan rｅcｅｉvinｇ 40,000 shareｓ of Mａｌlｏry　stoｃｋ iｎ　ｐaymenｔ foｒ　hｉｓ ｓerviｃes.　Oｖer tｈe nｅxｔ　1０　dayｓ,　the ｐubｌic rｅlaｔiｏnｓ firm　iｓsued　sevｅrａｌ pｒesｓ ｒeｌｅasｅｓ tｈａt dｉｓｃｕｓsed Maｌlｏry’ｓ ｅxcｅlｌenｔ gｒowtｈ　pｒｏspects．　O’Sullｉvan, ｔhrouｇｈ ｈｉs ｆiｎaｎcial reｓearcｈ　fｉｒm, ａlsｏ publiｓhｅｄ a reseａｒch rｅpｏrｔ recommendｉng Mallorｙ ｓｔｏcｋ aｓ ａ “buｙ.” Accｏｒding to ｔｈe　ＣFA Instｉtute Stａndards　ｏｆ Pｒoｆｅssionａl Coｎduct, Ｏ’Sulｌivａｎ ｉs mosｔ ｌｉkeｌy　ｒｅquired to dｉsclosｅ hｉs ｏwneｒship of Ｍａｌｌory ｓtock　ｉn　ｔｈe:
A. press releaseｓ　ｏｎly.　
Ｂ.　reseaｒch　ｒepｏrt only.
Ｃ.　bｏth the pｒｅsｓ reｌeaｓe　and tｈｅ researｃh　ｒｅpoｒt．

Answｅr: C
“Ｇuiｄanｃe　ｆor　Ｓtandarｄｓ I－VII”， ＣFA Ｉnstiｔｕtｅ
Modｕlar Level I,　Ｖol． １, pp. 21－26，　89－91　
Stuｄy Ｓessiｏn　1–2–ａ
Ｄｅｍonsｔｒａｔe a　ｔｈｏｒoｕｇh kｎowｌedge oｆ thｅ Code of Ｅｔhｉcs ａｎd Standards oｆ Ｐroｆeｓｓｉonａl Cｏｎduct　ｂy　appｌying tｈｅ　Cｏdｅ and Sｔanｄaｒｄs to sitｕatiｏnｓ　iｎｖｏlving ｉssuｅs of pｒｏfesｓionaｌ iｎtegrｉｔy.
C　is ｃorrｅcｔ　ｂecaｕｓe meｍｂｅｒｓ ｓhｏuld ｄiscloｓe　all　ｍａttｅｒs that reasonａblｙ coｕｌd　be expeｃｔeｄ　ｔo　impaｉr the mｅmｂeｒ’s ｏbｊｅctivity． Staｎdaｒｄ Ｉ (B), Standard　ＶI (Ａ)

５. Jeｆfeｒson Pieｄmｏｎｔ, CＦＡ,　ａ ｐoｒｔfｏlio maｎagｅr fｏｒ Pａｒk Iｎvｅsｔｍenｔｓ，　plａns to　manａｇe　the portfolｉos ｏf　seｖeral fａmily ｍeｍbｅｒs in eｘｃhange ｆor　ａ　percentａge of each　pｏrtfolio’ｓ ｐrｏｆiｔs. As ｈis family ｍｅmbｅrs haｖe　ｅxｔｅnsiｖｅ ｐｏｒtｆolioｓ rｅquiｒiｎg ｓubsｔａntial ａttentiｏn,　they haｖe　reqｕesｔed　tｈａt Piedmoｎｔ　ｐrovide tｈe ｓｅrvices ｏｕtsidｅ his　emｐｌｏｙment ｗitｈ Paｒｋ.　Pｉeｄmont　ｎotifies　hiｓ eｍｐloｙeｒ ｉn writiｎｇ ｏf ｈis ｐｒｏsｐeｃtｉｖｅ ouｔside employment．　Two ｗeｅｋｓ ｌａｔｅｒ, Piｅdｍonｔ ｂegｉns manaｇｉng tｈｅ　faｍｉｌy ｍemｂeｒs’ portｆoｌios． By ｍａｎagｉnｇ ｔｈｅsｅ porｔｆolioｓ,　dｉd　Ｐiedmｏnt vｉolatｅ any　ＣFA Iｎstitute　Stａndａrｄs of Professional Cｏnｄucｔ?　
A． Conｆｌicts　ｏf Ｉｎtereｓt　
B. Addｉtionａｌ　Coｍpｅnｓatiｏn.　
C. Boｔｈ　Aｄｄｉtiｏnal Compensatiｏｎ　ａｎd Ｃoｎfｌiｃｔs ｏf Iｎterest.
Ａnswer：　C
“Guiｄaｎce　ｆor　Standaｒｄs I-ＶＩI”, CFＡ Iｎstituｔe　
Moｄｕlａr Level　I， Vｏl． １， p. 7５，　89-９1
Sｔudy Seｓsｉoｎ 1–2–a　
Demonstｒate a　tｈorｏugh knowledgｅ ｏf ｔhｅ Coｄe of　Ｅｔhics ａnｄ　Stａｎdaｒｄｓ of Pｒoｆessｉｏｎaｌ　Ｃｏｎｄuct bｙ ａpｐｌying ｔhe Cｏｄe　aｎd　Staｎdａrds ｔo　ｓｉtｕatｉoｎs　inｖoｌvｉng　issｕｅs　of　profｅssiｏｎaｌ inｔeｇrity.　
C　ｉs ｃorｒect bｅｃａuｓe ｍｅｍbers sｈｏｕlｄ ｄｉｓｃlose aｌｌ pｏｔｅntｉal conflicｔs　of　ｉnｔerｅｓｔ，　ｔhｅ　ｓuｂｓtantiaｌ　time iｎvolvｅd ｉｎ manaｇｉng　faｍｉｌy　ａccounｔｓ， ａｎd wｈｅｎ ｅnｇaging in ｉｎdepenｄeｎt　prａctｉｃｅ for　ｃompｅnsatiｏn shoｕlｄ noｔ rｅｎdeｒ ｓervices　ｕｎtiｌ　rｅcｅｉvｉng wｒiｔｔｅn conseｎｔ fｒom　ａll ｐａrtｉｅs. Sｔａnｄａrd IV （B）, Ｓtandaｒd VI (A)．

6.　Thｅ eiｇｈｔ　maｊoｒ pｒｏvisｉｏns ｏf　tｈｅ Global　Inｖestmeｎt Perforｍanｃe Ｓｔandardｓ (ＧIＰS） incｌuｄｅ　aｌl ｏｆ　the fｏlloｗing eｘcept:

Ａ. Iｎput　Ｄatａ, Ｃalｃｕlatｉｏｎ　Mｅthodｏｌｏｇy, ａｎd Reａl Eｓｔate．
B.　Funｄａｍeｎｔalｓ of Ｃomｐliａnｃｅ,　Cｏmｐｏsiｔｅ Constrｕctiｏｎ， aｎd Ｄisｃlｏsurｅs．
C. Cａlｃｕlａｔion　Ｍethodoｌogｙ， Cｏmpｏｓitｅ Cｏｎsｔｒｕcｔiｏｎ, aｎd Aｌｔeｒｎatｉｖｅ Assets　
Answｅr： C
CＦA Ｉnsｔiｔｕte Stanｄａｒds
Modｕｌar　Levｅl I, Vｏl.　1, pｐ. 14１-１４2　
Sｔuｄy Sessｉｏｎ 1－4-d　
Ｃharacｔeｒiｚe tｈe　eiｇht maｊｏr secｔioｎs of　the ＧＩPS sｔandards.
C　iｓ corｒect　ｂecaｕsｅ Alｔｅｒnaｔiｖe Assｅts　is　nｏt ａmong tｈｅ　eight　ｍajor　provisiｏｎs ｏｒ secｔioｎs　oｆ the Global Ｉnvestmｅnt Ｐｅrfoｒmanｃe　Ｓｔanｄａrds whｉcｈ ｉnｃluｄｅ: Ｆuｎｄameｎtalｓ ｏf　Cｏｍpliａnce, Ｉnｐｕｔ Data, Ｃａlculatｉｏn Meｔhodｏｌｏgy, Cｏmposiｔe Cｏnsｔruｃtiｏn， Disｃｌoｓurｅs, Pｒeseｎtaｔion ａnd Repoｒtｉng， Ｒeaｌ　Ｅsｔate， ａｎd Pｒivaｔe Equitｙ.　Stanｄaｒd　ＩI， Provisioｎs of Tｈe Globaｌ　Iｎvestmｅnｔ Perｆｏrｍancｅ Stａnｄarｄs.

７.　Hui Chen, ＣFＡ, dｅvｅlｏps　mａrｋｅtiｎg　materｉａls for aｎ inｖesｔｍeｎｔ funｄ　he ｆounｄｅd　thｒee　yｅaｒs　aｇo. Ｔhe　matｅriａls show thｅ 3-,　２－　ａｎd　1－yｅar　retｕrｎs for the　ｆuｎｄ.　He inｃluｄｅs　a　footnoｔe that sｔateｓ in smaｌl print　“Pａｓt pｅｒｆorｍaｎｃe　ｄｏes　ｎot guａｒaｎｔeｅ futｕre　reｔｕｒｎs．”　He　alｓo ｉncludｅs a seｐaｒａｔｅ　sheet sｈｏwing thｅ mｏｓt ｒｅceｎt ｓemi-aｎnｕal ａnｄ　quaｒteｒｌy　reｔｕrns, whｉｃｈ　noteｓ ｔｈey　hａｖe been nｅiｔheｒ　aｕｄited ｎoｒ ｖeriｆiｅd. Has Chｅn ｍｏsｔ liｋｅly violateｄ ａnｙ ＣFＡ　Ｉnｓｔiｔｕte　Staｎdａｒdｓ oｆ Profｅssionaｌ Ｃondｕct?　
Aｎｓwｅr: A
“Ｇuiｄａnｃe　fｏｒ Ｓtaｎdardｓ I－VII”， CFA Ｉnｓtｉtuｔｅ
　Moduｌar Leveｌ　Ｉ，　Ｖoｌ. 1，　ｐp.　64－65
“Guｉｄance foｒ Stａndards I-VＩＩ”， ＣFA Ｉｎsｔｉｔｕte　
　Modular　Ｌevｅl Ｉ, Ｖｏl． 1,　pp． 64-6５
Stｕdy Sesｓｉoｎｓ 1－2-a
Deｍonstratｅ　a thoroｕｇh ｋnowlｅdge of the　Coｄe of Ethiｃs aｎd　Stａｎdaｒds　ｏf Professｉonaｌ Coｎｄuct ｂy applｙｉｎg　thｅ Code aｎd Ｓtaｎdards tｏ　situａtiｏｎs ｉｎvoｌｖiｎg　ｉsｓues of　profeｓｓionａl integｒity．
A is coｒrect　bｅcａuse tｈｅ　Ｓｔａndａrds require membeｒs ｔｏ　maｋｅ　rｅasonａblｅ　eｆforts　tｏ　ｍａｋe　surｅ　ｐｅｒfoｒmａncｅ　informatioｎ　is faｉｒ， acｃurａtｅ， ａｎd completｅ． Tｈｅ Sｔandａｒｄs do　ｎot　ｒｅquirｅ ｃoｍpliaｎce　ｗｉtｈ　Gｌobal Invｅsｔｍent Peｒｆormance　Ｓｔａnｄarｄｓ (ＧＩPS), ａuditinｇ, or　verifｉcａtiｏn　requｉrements． Stａnｄard　ＩＩI (D)
Ａ.　Ｎo.
B．　Yeｓ,　becａuse　he　inｃｌｕｄeｄ un-auｄｉteｄ ａnd unveriｆiｅd ｒesｕlts．　
C. Yｅs,　becaｕse　ｈe　did noｔ adｈｅｒｅ ｔo　the globａl　ｉｎvｅstment　perｆoｒmanｃe stａnｄaｒｄs.

8. Ｃhaｒｌie Mａnciｎi，　ＣＦA， is　thｅ　Managｉnｇ Ｄirｅctｏｒ ｆoｒ Buｓiｎeｓs Devｅlｏpｍent ａt ＳV Finａncial, （ＳＶF）,　a ｌarｇe U．Ｓ．　baｓｅd mutuａl ｆuｎd oｒganｉｚatｉon.　Mａncini ｈas　bｅｅｎ　under ｐｒessure rｅcently to　iｎcreaｓe　rｅｖenｕｅs． In ordｅr　to sｅcure ｂusｉnｅss　fｒoｍ a　largｅ ｈｅdgｅ　fund ｍanageｒ based　in Ａsｉa,　Ｍancｉｎi　ｒecently apｐroved ｆleｘibｌe tｅrms ｆoｒ tｈｅ fuｎd’s ｃlienｔ ａｇｒeemｅnt.　Ｔｏ aｌlow　for　timｅ ｚone dｉffｅrenceｓ,　the　agｒｅement ｐermits ｔhｅ　heｄge　ｆｕnd ｔo　tｒaｄe in aｌｌ of ＳVＦ’s muｔｕａl ｆunds ｓiｘ hoｕｒｓ ａfter　tｈe ｃlose of　Ｕ.S． markeｔｓ． Dｉｄ Manｃinｉ　vｉolate　any　CFA　Iｎstitute Ｓtａndards of　Prｏfessｉｏｎａｌ Conduct?　
A. Ｎo.
B. Yes， wｉｔｈ regaｒd ｔo Fａir Dｅaｌｉｎｇ．　
C.　Yｅs,　with　ｒｅgarｄ to　Ｆaiｒ Ｄealing and Mａｔｅriａl　Ｎoｎpuｂliｃ　Informaｔion.
Aｎsｗｅr:　C　
“Gｕidance for　Ｓtaｎdaｒds I-VＩＩ”,　CFＡ　Inｓtｉtute　
Ｍoｄular Lｅvｅｌ I,　Ｖoｌ.　1,　pp． 45, 53－55　
Study Sesｓiｏnｓ １-2-ａ
Dｅmonｓtｒaｔe　a　ｔｈoｒoｕgｈ knoｗｌｅdgｅ　ｏf　the Cｏdｅ of Etｈicｓ　aｎｄ Ｓｔａndarｄs　ｏｆ Pｒｏfｅssioｎａl　Cｏnｄuct ｂy apｐlyinｇ thｅ　Codｅ　and　Stａndａrｄｓ ｔo siｔｕaｔioｎs iｎvｏlｖinｇ　iｓsueｓ oｆ　professiｏｎaｌ ｉntｅｇｒity.
C is　cｏrreｃｔ ｂecａuｓe　clients should　ｂe treatｅd　fairlｙ ａｎｄ impａrtially．　Standard ＩII　(B). Iｎ addｉtｉon， ｔhｅ　ｆlexiｂle ｔraｄiｎg ｔerms ａｌｌｏw the hｅdｇe fund mａnaｇer tｏ enriｃh thｅmselveｓ　ａnd is a violaｔｉｏｎ　ｏｆ Stａnｄａrd　IＩ A， ｃoｎcｅｒning　ｔradinｇ　ｏn mａteｒial　noｎpubｌic inforｍation． Tｈｉs　ｉs　ａlｓo a conｆlｉcｔ oｆ ｉnｔeresｔ, Sｔanｄａrｄ VＩ (A），　Disclosｕrｅ ｏf Coｎflicts.

9. Ron Duｎdｅr,　CFA， iｓ　ｔhe CIＯ　ｆor　Blｉnｇ Tｒusｔ　（ＢT）, an　iｎvｅstmenｔ ａdvisoｒ. Dunｄｅr　rｅceｎtｌｙ　ａｓｓiｇned onｅ ｏf　his ｐｏrｔfｏliｏ mａnａｇeｒｓ, Doug Ｃｈｅｔｃh， to manａｇe ｓeverａl　ａccouｎtｓ tｈat　pｒimａｒｉly　ｉｎｖest ｉｎ　tｈｉｎly traｄed mｉcrｏ－caｐ sｔocks． Duｎdｅr ｓoon ｎotices that Ｃhｅtｃh　ｐｌaces many ｓtoｃk　ｔrades for these　ａccｏuntｓ on the last day of tｈe　moｎｔh, toｗards the　mａrkｅt’s　cｌose. Dｕnder ｆinds　ｔhis ｔrading ａｃｔｉvity unusｕal and　spｅａks to　Ｃｈｅｔch whｏ ｅｘplaｉns ｔｈat　ｔhe ｔrａｄinｇ　activity　ｗas ｃompｌeｔｅd aｔ tｈｅ　client’ｓ ｒｅquｅst． Dｕnｄer　ｄoes ｎｏt invｅsｔigate ｆuｒtｈeｒ． Six　mｏnｔｈｓ　laｔer　rｅｇuｌatｏry　ａuｔhｏritieｓ　sanctiｏｎ BＴ ｆor　maniｐulatｉng micro-cａｐ stｏｃｋ　pｒｉceｓ　aｔ month　enｄ iｎ　oｒdｅr　to　boost ａcｃounｔ　vａlues. Diｄ Dundｅｒ　violate　ａnｙ CＦA Insｔiｔute Sｔaｎdａrds oｆ Prｏfeｓsionａｌ Cｏndｕｃt?
A. No.
B． Yｅs,　bｅcausｅ ｈe faileｄ to　reasonabｌy superviｓｅ Chｅtch.
C. Yes, beｃaｕse　he　did　nｏt ｒｅｐoｒｔ　ｈis　findｉngs ｔo ｒｅｇuｌａtｏrｙ ａuｔｈorities.
Ａnｓwer: Ｃ　
“Guidａnce　ｆor Ｓtａｎdａrｄs　I－VII”,　ＣFA　Instiｔｕｔe
Modｕｌａr　Levｅl I, Voｌ． 1, ｐｐ. 76-７8
Ｓｔｕdｙ　Ｓesｓiｏns １-２-a
Dｅｍｏnsｔｒａtｅ a ｔｈｏｒough ｋnowlｅdge of　the Cｏｄｅ ｏｆ Ｅthicｓ ａnｄ Standards of Pｒofesｓｉｏｎal Cｏnｄuct ｂｙ aｐplyｉｎg ｔｈｅ Ｃode　ａｎｄ　Stanｄarｄｓ tｏ situatｉons iｎｖoｌving iｓsｕｅs oｆ professioｎａｌ iｎtｅgrity．　
B　ｉs　cｏｒrｅct ｂｅcauｓｅ tｈe CFA Instituｔe Sｔａndaｒｄ on Rｅsｐoｎｓiｂｉｌiｔｉｅs　of Ｓｕpervisors,　Sｔanｄａrd IV (Ｃ), ｒequires　meｍｂeｒs/cａndiｄates to tａｋｅ stｅps tｏ deｔect　anｄ ｐｒｅｖeｎt vｉolａｔions　of　laｗs, ruｌes anｄ rｅguｌatiｏns．　Dｕｎｄeｒ fａilｅｄ in　hｉs　supｅｒvisory rｏlｅ　ｗheｎ　he　ａｃcepted Ｃhetｃh’s ｅｘplanａtｉoｎ of the　uｎusual trａdｉnｇ activitｙ. Ｄunder　should have revｉewed thｅ client’s　ｇoals anｄ ｏbｊectives,　ａnｄ recｏｒds,　ｔo　see if ｔｈey in　fact　requesteｄ ｍｏnｔh-enｄ traｄinｇ. Reｇardless ｏf ｔhe ｅxplaｎation　prｏvidｅｄ　by Ｃｈetch Ｄunｄer　sｈouｌｄ havｅ　investｉgateｄ ｆurｔher．