Hi CFA Aspirants, welcome to AMBiPi (Amans Maths Blogs). Are you preparing for CFA Level 1, CFA Level 2 or CFA Level 3 Exam for making a great career in CFA (Charted Financial Analyst) and struggling for Free CFA Level 1 Practice Test Questions | CFA Mock Exam with Answer Keys?
Then, you are on the right article out of all over the CFA Study Materials Book and practice questions available on internet. In this article, you will get Free CFA Level 1 Mock Exam Practice Questions.
Free CFA Level 1 Mock Practice Exam Questions Bank
Free CFA Level 1 Practice Question No: 1:
According to the AIMR-RPS, _________ are defined to include all discretionary and non discretionary assets.
Option A : individually managed assets
Option B : individually investor’s assets
Option C : total firm assets
Option D : global assets
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Option C :
Total firm assets are defined to include all discretionary and nondiscretionary assets. Total firm assets don’t refer to assets underlying overlay investment strategies, such as currency overlay, options and futures overlays, securities lending programs and asset allocation overlay strategies, unless the firm actually manages the underlying assets.
CFA Level 1 Exam Question No: 2:
Standard IV (B.7) deals with ________.
Option A: priority of Transactions
Option B: None of these answers
Option C: Disclosure of Referral Fees
Option D: Performance Presentation
Option E: Prohibition against Misrepresentation
Option F: Disclosure of Conflicts to Clients and Prospects
Option G: Preservation of Confidentiality
Option H: Prohibition against Use of Material Nonpublic Information
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Option F :
Standard IV (B.7) states that members shall disclose to their clients all matters that could become potential conflicts. These include beneficial ownership of securities or other investments, that reasonably could be expected to impair the member’s ability to make unbaised and objective recommendations.
Free CFA Level 1 Mock Exam Question No: 3:
Standard III (D) deals with ________.
Option A: Professional Misconduct
Option B: Use of Professional Designation
Option C: Plagiarism
Option D: Fundamental Responsibilities
Option E: None of These Answers
Option F: Obligation to Inform Employer of Code and Standard
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Option E :
Standard I deals with Fundamental Responsibilities. Standard II (A) deals with Use of Professional Designation. Standard II (B) deals with Professional Misconduct. Standard II (C) deals with Plagiarism. Standard III (A) deals with Obligation to inform Employer of Codes and Standards. Standard III (D) deals with the Disclosure of Additional Compensation Arrangements.
CFA Level 1 Free Practice Question No: 4:
Another name for “access” person is ________.
Option A: None of These Answers
Option B: Supervisor
Option C: Ombudsman
Option D: Guardian
Option E: Fiduciary
Option F: Covered Person
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Option F :
Access or covered persons have knowledge of pending or actual investment recommendation or action. The firm’s definition of access (covered) person should be broad enough to cover all people with that knowledge.
Free CFA Practice Question No: 5:
Which of the following is/are true about the Performance Presentation Standards?
I. A member who compiles with the mandatory requirements of the PPS but does not follow the recommendation requirements can publicity claim compliance with the PPS.
II. The PPS are designed to be primarily a performance measurement framework.
III. The Standards are not designed to enhance or detract from the presentation of historical results.
Option A: III Only
Option B: II and III Only
Option C: I, II and III
Option D: I and III only
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Option D :
The PPS are designed to be primarily a performance presentation system, not a performance measurement system. The Standards are not designed to enhance or detract from the usefulness of the information in historical results, through it does restrict the way they are to be presented. The PPS are voluntary standards and not necessarily binding on AIMR members. To claim compliance, members must abide by the mandatory requirements, at the very least.
CFA Level 1 Sample Question No: 6:
If a firm uses non-discretionary leverage, it must present performance using:
Option A: Both actual returns and all-cash basis.
Option B: All-cash basis i.e. removing leverage effects.
Option C: Actual returns
Option D: None of These Answers
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Option B :
According to Section B of the PPS Standards – “Calculation of Returns” – for non-discretionary leverage, performance must be presented on an all-cash returns basis.
Free CFA Level 1 Quiz Question NO: 7:
_______ and other hybrid securities must be treated consistently across and within composites.
Option A: Portfolios
Option B: Convertibles
Option C: Assets
Option D: Bond
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Option B :
This is one of the requirements which is mandatory in order to be in compliance with the PPS.
Free CFA Level 1 Quiz Question NO: 8:
Standard IV (B.8) Disclosure of Referral Fees, includes ________.
Option A: Referrals fees paid in cash
Option B: Referrals fees paid in Kind
Option C: Soft dollar referrals fees.
Option D: All of these answers
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Option D :
Under Standards IV (B.8), appropriate disclosure involves disclosing the nature of the consideration or benefits given or received for the recommending of services. Consideration includes all fees, whether paid in cash, in soft dollars or in kind.
Free CFA Practice Question No: 9:
Which of the following relating to compliance procedures for complying with Standard III (E) is false? The compliance procedure should.
Option A: Outline permissible conduct.
Option B: Delineate procedures for reporting violations and sanctions.
Option C: Designate a team of outside colleagues to form a review board.
Option D: Outline the scope of the procedures.
Option E: be easy to understand
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Option C :
The compliance officer should be designated from within the firm.
CFA Mock Exam Free Question No: 10:
According to the AIMR-PPS for venture and private placements, ________ internal rate of return must be presented since inception of the fund and be net of fees, expense and carry to the limited partner.
Option A: limited
Option B: extended
Option C: cumulative
Option D: general
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Option C :
Cumulative internal rate of return must be presented since inception of the fund and be net of fees, expenses and carry to the limited partner. IRR must be calculated based on cash-on-cash returns plus residual value.
