cfa LEVEL ONE
2013 Level I Mock Exam: Afternoon Session
The afternoon session of the 2013 Level I Chartered Financial Analyst (CFA®) Mock Examination has 120 questions. To best simulate the exam day experience, candidates are advised to allocate an average of
1.5 minutes per question for a total of 180 minutes (3 hours) for this session of the exam.
Questions
Topic
Minutes
1–18
Ethical and Professional Standards
27
19–32
Quantitative Methods
21
33–44
Economics
18
45–68
Financial Statement Analysis
36
69–78
Corporate Finance
15
79–90
Equity Investments
18
91–96
Derivative Investments
9
97–108
Fixed Income Investments
18
109–114
Alternative Investments
9
115–120
Portfolio Management
9
Total:
180
Questions 1 through 18 relate to Ethical and Professional Standards
1. Carlos Cruz, CFA, is one of two founders of an equity hedge fund. Cruz manages the fund’s assets, and the other co-founder, Brian Burkeman, CFA, is responsible for fund sales and marketing. Cruz notices the most recent sales material used by Burkeman indicates assets under management are listed at a higher value than the current market value. Burkeman justifies the discrepancy by stating recent market declines account for the difference. In order to comply with the CFA Institute Standards of Professional Conduct, Cruz should least likely take which of the following actions?
A. Correct the asset information and provide updates to prospective clients.
B. Report the discrepancy to CFA Institute’s Professional Conduct Program.
C. Provide a disclaimer within marketing material indicating prices are as of a specific date.
2. Linda Chin, CFA, is a member of a political group advocating less governmental regulation in all aspects of life. She works in a country where local securities laws are minimal and insider trading is not prohibited. Chin’s politics are reflected in her investment strategy, where
The afternoon session of the 2013 Level I Chartered Financial Analyst (CFA®) Mock Examination has 120 questions. To best simulate the exam day experience, candidates are advised to allocate an average of
1.5 minutes per question for a total of 180 minutes (3 hours) for this session of the exam.
Questions
Topic
Minutes
1–18
Ethical and Professional Standards
27
19–32
Quantitative Methods
21
33–44
Economics
18
45–68
Financial Statement Analysis
36
69–78
Corporate Finance
15
79–90
Equity Investments
18
91–96
Derivative Investments
9
97–108
Fixed Income Investments
18
109–114
Alternative Investments
9
115–120
Portfolio Management
9
Total:
180
Questions 1 through 18 relate to Ethical and Professional Standards
1. Carlos Cruz, CFA, is one of two founders of an equity hedge fund. Cruz manages the fund’s assets, and the other co-founder, Brian Burkeman, CFA, is responsible for fund sales and marketing. Cruz notices the most recent sales material used by Burkeman indicates assets under management are listed at a higher value than the current market value. Burkeman justifies the discrepancy by stating recent market declines account for the difference. In order to comply with the CFA Institute Standards of Professional Conduct, Cruz should least likely take which of the following actions?
A. Correct the asset information and provide updates to prospective clients.
B. Report the discrepancy to CFA Institute’s Professional Conduct Program.
C. Provide a disclaimer within marketing material indicating prices are as of a specific date.
2. Linda Chin, CFA, is a member of a political group advocating less governmental regulation in all aspects of life. She works in a country where local securities laws are minimal and insider trading is not prohibited. Chin’s politics are reflected in her investment strategy, where