[单项选择]Paul Salyer, CFA and portfolio manager is making a presentation to a prospective client. Paul says that as a new portfolio manager, he made an average annual rate of return of 50 percent in the last two years at his previous firm and that based on this, he can guarantee a 50 percent return to the client. Which of the following statements is in accordance with the Standard Ⅲ (D), Performance Presentation（）
A. Implying that he can guarantee a return.
B. Imputing his past performance to future performance.
C. Stating his past performance as long as it is fact.

[单项选择]Chris Babcock, CFA, a portfolio manager for a large Texas investment firm, has been offered compensation in addition to what her firm pays her. The offer is from one of her clients and the additional compensation will be based on her yearly performance in excess of the market index. Babcock should :（）
A. turn down the offer because it represents a clear conflict between this client and Babcock’s other clients.
B. make written disclosure to all parties involved before she accepts this offer.
C. make written disclosure to her other clients before she accepts this offer.

[单项选择]Kenneth, CFA, is a portfolio manager at A & B limited, if he suspects a colleague at his company of engaging in ongoing illegal activities, as according to the CFA Institute Standards of Professional Conduct, he is required to take all of the following actions EXCEPT:（）
A. determine whether the conduct is, in fact, illegal.
B. disassociate himself from any illegal activity.
C. report the illegal violations to the appropriate governmental or regulatory organizations.

[单项选择]Kenneth, CFA, is a portfolio manager at A&B limited, if he suspects a colleague at his company of engaging in ongoing illegal activities, as according to the AIMR Standards of Professional Conduct, he is required to take all of the following actions EXCEPT:（）
A. determine whether the conduct is, in fact, illegal. 
B. disassociate himself from any illegal activity. 
C. report the illegal violations to the appropriate governmental or regulatory organizations.

[单项选择]A portfolio manager anticipates a major increase in market interest rates. Which trading strategy would be most likely to generate above average returns in a bond investment Purchasing:（）
A. short maturity bonds with high coupon rates.
B. speculative grade bonds with high coupon rates.
C. bonds that will increase the average duration of the investment portfolio.

[单项选择]Frank Jameson is a portfolio manager with 90 percent of the large-cap diversified mutual fund he controls invested in common stocks. Jameson is concerned the overall market will decline by a significant amount over the next two months due to a slowing of the general economy. Which of the following actions will provide a hedge for the mutual fund（　）
A. Purchasing call options on the S&P 500. 
B. Writing put options on the S&P 500. 
C. Purchasing put options on the Standard and Poor’s 500 Index (S&P 500).

[单项选择]Laura James is the head portfolio manager for National Fund, a U.S. based mutual fund with a well-respected track record. National’s primary focus is on large-cap domestic equities, and the fund has consistently posted high returns relative to its peer group over the past seven years. Much of National’s recent success is from its investments in the U.S. automobile industry, which have posted extraordinary returns due to a favorable economic scenario. Over the past seven years, the U.S. economy has been expanding, foreign competition has not met consumer expectations, and oil prices have remained low. These factors have contributed to an increase in market share for the domestic producers (at the expense of foreign competitors), and the result has been strong earnings for the top U.S. automakers. 　　Ford Motor Company, in particular, has enjoyed tremendous success in this environment. Ford has capitalized on the trend toward bigger vehicles, particularly sport utility vehicles (SUVs),
A. Profits are high and competition increases from other firms in the industry.
B. Profits increase as firms enter the industry.
C. Profits are low and firms flee the industry.
D. Prices could increase or decrease depending on the level of profits.

[单项选择]Pamela Gee is a portfolio manager. She is planning to establish her own money management firm. She has already informed her employer, Branford, Inc., about her plans. In her remaining time at Branford, she can:（）
A. start the registration of her new company.
B. solicit Branford colleagues but not Branford clients.
C. inform her current clients about her resignation and let them know how to reach her, in case any problems arise in the future.

[单项选择]A portfolio manager adds a new stock that has the same standard deviation of returns as the existing portfolio but has a correlation coefficient with the existing portfolio that is less than +1. Adding this stock will have what effect on the standard deviation of the revised portfolio’s returns The standard deviation will:（）
A. increase.
B. remain unchanged.
C. decrease.

[单项选择]While working on her report, Jean Paul, CFA, learns from her friend in the investment banking department that the company she is analyzing can expect a tender offer very soon. Concerning this conclusion, Paul can:（）
A. trade on it, because she figured it out by herself.
B. trade on it, because it is public information.
C. not trade on it because it is material nonpublic information.

[单项选择]Paul Thomas, CFA, is designing a new layout for research reports his firm writes and issues on individual stocks. In his design, Thomas includes a stock chart on the first page of each report. He does not reference that the charts are copied from an unrecognizable Finance web site. Thomas has:（）
A. not violated CFA Institute Standards of Professional Conduct because these charts are widely available over the Internet.
B. violated CFA Institute Standards of Professional Conduct because he did not make sure that the information in these charts is accurate.
C. violated CFA Institute Standards of Professional Conduct because he did not state the source of the charts.

[单项选择]There’s a Hatcher, CFA, is making arrangements to establish her own investment advisory business before terminating her relationship with her current employer, Elite Brokers, Inc. Elite is a small company consisting of only six investment professionals and a small support staff. According to CFA Institute Standards of Professional Conduct, which of the following activities is least likely a violation of Hatcher’s duty to Elite（）
A. Hatcher solicits Elite’s clients before her termination of employment at Elite. 
B. Hatcher takes home copies of Elite’s client lists and marketing presentations. 
C. Hatcher leases office space, furniture, and other equipment for her new business.

[填空题]Paul Smith

[单项选择]

A Desert Between Paul and Clara
Paul had long promised to marry Clara. But at thirty-three he met and married Alice. Clara was driven mad.
Paul was taken to court. The judge ordered him to pay Clara $600 because of the broken promise. Paul had to borrow the money from a moneylender. He agreed to pay back $5 a month--for twenty years. His wages at the time were $16 a month.
Paul and Alice were poor but not unhappy. They had little enough food, certainly, even before the children began to arrive. Each month Paul paid $5 to the moneylender. He worked hard, never taking a holiday, in time, there were seven mouths to feed.
Illness was always with them. It grew serious when the oldest child was eight. The years of hunger weakened the family, because each month Paul paid $5. The details of the sickness were ugly, but the result was this: after twelve years of family life, Paul was alone in the world.
He lived alone, except for memories. Wor
A. poor but not sad.
B. very sick.
C. free from debt.
D. lonely and unhappy.