Avatto > CFA Level 1 > PRACTICE QUESTIONS > Ethical And Professional Standards > Ethical And Professional Standards Section 1

Ethical And Professional Standards MCQ - Ethical And Professional Standards Section 1

26 According to the CFA Institute Code of Ethics, which of the following statements is correct? Members and Candidates must:

A
promote the integrity and efficiency of the global capital markets for the ultimate the benefit of society.
B
promote the integrity and efficiency of the global capital markets for the ultimate the benefit of investors.
C
promote the integrity and viability of the global capital markets for the ultimate the benefit of society.

Refer to the Code of Ethics.

27 Promote the integrity and viability of the global capital markets for the ultimate benefit of society. According to the CFA Institute Code of Ethics, which of the following statements is correct? Members and Candidates must:

Refer to the Code of Ethics.

28 The Standards of Practice Handbook is most likely to require a member to disclose which of the following to clients and prospective clients?

According to Standard V(B) Communication with Clients and Prospective Clients members should inform their clients about significant limitations and risks associated with the investment process.

29 According to the Standards of Practice Handbook, which of the following statements about Performance Presentation is most accurate? The Standard related to performance presentation requires members and candidates:

Refer to Standard III(D) Performance Presentation.

30 According to the Standards of Practice Handbook, members are most likely required to disclose to their clients:

Refer to Standard VI(A) Disclosure of Conflicts.

Your Progress

0%

Start Practising!

You've answered 0 of 85 questions in this topic.

Practice Spotlight

Misrepresentation

Investment professionals must not knowingly make false or misleading statements about analysis, recommendations, qualifications, services, or professional activities.

Day 9 / 10

Global Spotlight

Build Your First Streak

Complete one short Ethical And Professional Standards Section 1 session today, then return tomorrow. Consistency matters more than a long first session.

Day 2 / 10

Question Spotlight

Question:

Which of the following statements is most accurate according to the Standards of Practice Handbook? Members and Candidates:

A. who possess nonmaterial nonpublic information that could affect the value of an investment must not act or cause others to act on the information.
B. who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information.
C. who possess nonmaterial public information that could affect the value of an investment must not act or cause others to act on the information.

Correct answer: B

Explanation:

Refer to Standard II(A) Material Nonpublic Information.

Click to view the complete question details

Day 8 / 10 Open this question

Community Insight

Based on 522 saved attempts

Most Attempted TopicEthical And Professional Standards Section 1
Most Challenging TopicEthical And Professional Standards Section 1
Average Accuracy99%

Featured Question

(Based on recent community answers)

Q. #20508100% Incorrect

Rhonda Gates, CFA, works as a senior analyst covering basic materials and mining industry at…

Try This Question →

This Week's Challenge

Complete 20 questions. Community average: 31.5 this week.

0 / 20 Start Challenge →

Why Practice with Avatto?

High Quality MCQsExam-focused questions with accurate answers

Detailed ExplanationsStep-by-step explanations to enhance learning

Latest Exam PatternBased on updated syllabus and pattern

Performance AnalyticsTrack performance and improve weak areas

100% Free PracticePractice unlimited questions for free

Forgot your password?

I agree with the Terms.