1. Ethical and Professional Standards

Question 1

I.

Answer 1

I. Professionalism

Question 2

I.A.

Answer 2

I.A. Knowledge of the LAW Members and Candidates must under-stand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of conflict, Members and Candidates must comply with the more strict law, rule, or regulation. Members and Candidates must not knowingly participate or assist in and must dissociate from any violation of such laws, rules, or regulations.

Question 3

I.B.

Answer 3

I.B. IO. Independence and Objectivity. Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expectedto compromise their own or another’s independence and objectivity.

Question 4

I.C.

Answer 4

I.C. MISREP. Misrepresentation. Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.

Question 5

I.D.

Answer 5

I.D. MISCON. Misconduct. Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional repu-tation, integrity, or competence.

Question 6

II.

Answer 6

II. ICM. NTEGRITY OF CAPITAL MARKETS

Question 7

II.A.

Answer 7

II.A. MNPI. Material Nonpublic Information. Members and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information.

Question 8

II.B.

Answer 8

II.B. MM. Market Manipulation. Members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants.

Question 9

III.

Answer 9

III. DUTIES TO CLIENTS

Question 10

III.A.

Answer 10

III.A. LPC. Loyalty, Prudence, and Care. Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment. Members and Candidates must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests.

Question 11

III.B.

Answer 11

III.B. FD. Fair Dealing. Members and Candidates must deal fairly and objec-tively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities.

Question 12

III.C.

Answer 12

III.C. SUIT. Suitability 1. Advisor. 1.a. RI 1.b. SC 1.c. Pfolio 2. Mandated When Members and Candidates are in an advisory relationship with a client, they must: a. Make a reasonable inquiry into a client’s or prospective client’s investment experience, risk and return objectives, and financial constraints prior to making any investment recommendation or taking investment action and must reassess and update this information regularly. b. Determine that an investment is suitable to the client’s financial situation and consistent with the client’s written objectives, mandates, and constraints before making an investment recommendation or taking investment action. c. Judge the suitability of investments in the context of the client’s total portfolio. 2. When Members and Candidates are responsible for managing a portfolio to a specific mandate, strategy, or style, they must make only investment recommendations or take only invest-ment actions that are consistent with the stated objectives and constraints of the portfolio.

Question 13

III.D.

Answer 13

III.D. PP - FAC. Performance Presentation. When communicating investment performance information, Members and Candidates must make reasonable efforts to ensure that it is fair, accurate, and complete.

Question 14

III.E.

Answer 14

III.E. CONF. Preservation of Confidentiality. Members and Candidates must keep information about current, former, and prospective clients confidential unless: 1. The information concerns illegal activities on the part of the client or prospective client, 2. Disclosure is required by law, or 3. The client or prospective client permits disclosure of the information.

Question 15

IV.

Answer 15

IV. DUTIES TO EMPLOYERS

Question 16

IV.A.

Answer 16

IV.A. Loyalty. In matters related to their employment, Members and Candidates must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abili-ties, divulge confidential information, or otherwise cause harm to their employer.

Question 17

IV.B.

Answer 17

IV.B. ACA. Additional Compensation Arrangements. Members and Candi-dates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a conflict of interest with their employer’s interest unless they obtain written consent from all parties involved.

Question 18

IV.C.

Answer 18

IV.C. SUPS. Responsibilities of Supervisors. Members and Candidates must make reasonable efforts to ensure that anyone subject to their supervision or authority complies with applicable laws, rules, regulations, and the Code and Standards.

Question 19

V.

Answer 19

V. IARA. INVESTMENT ANALYSIS, RECOMMENDATIONS AND ACTIONS

Question 20

V.A.

Answer 20

V.A. D-RB Diligence and Reasonable Basis. D-RB 1.DIT 2.RAB Members and Candidates must: 1. Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions. 2. Have a reasonable and adequate basis, supported by appro-priate research and investigation, for any investment analysis, recommendation, or action.

Question 21

V.B.

Answer 21

V.B. COMM. Communication with Clients and Prospective Clients. COMM 1.FP 2.LR 3.RJF 4.FO Members and Candidates must: 1. Disclose to clients and prospective clients the basic format and general principles of the investment processes they use to analyze investments, select securities, and construct port-folios and must promptly disclose any changes that might materially affect those processes. 2. Disclose to clients and prospective clients significant limita-tions and risks associated with the investment process. 3. Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients. 4. Distinguish between fact and opinion in the presentation of investment analysis and recommendations.

Question 22

V.C.

Answer 22

V.C. RR. Record Retention. Members and Candidates must develop and maintain appropriate records to support their investment anal-yses, recommendations, actions, and other investment-related communications with clients and prospective clients.

Question 23

VI.

Answer 23

VI. CONFLICTS OF INTEREST

Question 24

VI.A.

Answer 24

VI.A. DISC. Disclosure of Conflicts. Members and Candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or inter-fere with respective duties to their clients, prospective clients, and employer. Members and Candidates must ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively.

Question 25

VI.B.

Answer 25

VI.B. PRI. Priority of Transactions. Investment transactions for clients and employers must have priority over investment transactions in which a Member or Candidate is the beneficial owner.

Question 26

VI.C.

Answer 26

VI.C. REF. Referral Fees. Members and Candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from or paid to others for the recommendation of products or services.

Question 27

VII.

Answer 27

VII. MEMBER. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE

Question 28

VII.A.

Answer 28

VII.A. CONDUCT. Conduct as Participants in CFA Institute Programs. Members and Candidates must not engage in any conduct that compromises the reputation or integrity of CFA Institute or the CFA designation or the integrity, validity, or security of the CFA Institute programs.

Question 29

VII.B.

Answer 29

VII.B. REFERENCE. Reference to CFA Institute, the CFA Designation, and the CFA Program. When referring to CFA Institute, CFA Institute member-ship, the CFA designation, or candidacy in the CFA Program, Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding the CFA designation, or candidacy in the CFA program.

Question 30

THE CODE OF ETHICS

Answer 30

Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation (“Members and Candidates”) must: • Act with integrity, competence, diligence, respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets. • Place the integrity of the investment profession and the interests of clients above their own personal interests. • Use reasonable care and exercise independent professional judg-ment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities. • Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession. • Promote the integrity and viability of the global capital markets for the ultimate benefit of society. • Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

Question 31

PREAMBLE

Answer 31

The CFA Institute Code of Ethics and Standards of Professional Conduct are fundamental to the values of CFA Institute and essential to achieving its mission to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. High ethical standards are critical to maintaining the public’s trust in financial markets and in the investment profession. Since their creation in the 1960s, the Code and Standards have promoted the integrity of CFA Institute members and served as a model for meas-uring the ethics of investment professionals globally, regardless of job function, cultural differences, or local laws and regulations. All CFA Institute members (including holders of the Chartered Financial Analyst® [CFA®] designation) and CFA candidates must abide by the Code and Standards and are encouraged to notify their employer of this responsibility. Violations may result in disciplinary sanctions by CFA Institute. Sanctions can include revocation of membership, revocation of candidacy in the CFA Program, and revocation of the right to use the CFA designation.

Question 32

Paul

Answer 32

Paul let Yoko represent his Condo

Question 33

ICBMs

Answer 33

ICBMs May Never Protect Israel from M&Ms

Question 34

Clowns

Answer 34

Clowns from the LAPD FuckeD my SUIT as I screamed Radical Islamists from Santa Catarina stole my PORTEFEUILLE MANDala and PePe’s FACe had a CONFEDERATE FLAG

Question 35

Employers

Answer 35

Employers deserve Loyalty and the ACA for Supervisors.

Question 36

Yara

Answer 36

Yara DIT the RABbi with .COM Filhos da Puta Left and Right while Roger James Federer Fucked Off at the Round Robin.

Question 37

Conflicting Evidence

Answer 37

In case of Conflicting evidence, DISCLOSE the PRIORITY of your REFERENCES

Question 38

As a CFA Member

Answer 38

As a CFA member, CONDUCT yourself with DEFERENCE.

Question 39

Total Mnemonics

Answer 39

1. Paul let Yoko Represent his Condo. 2. ICBMs May Never Protect Israel from M&Ms 3. Clowns from the LAPD FuckeD my SUIT as I screamed Radical Islamists from Santa Catarina stole my PORTEFEUILLE MANDala and PePe’s FACe had a CONFEDERATE FLAG. 4. Employers deserve Loyalty and the ACA for Supervisors. 5. Yara DIT the RABbi with .COM Filhos da Puta Left and Right while Roger James Federer Fucked Off at the Round Robin. 6. In case of Conflicting evidence, DISCLOSE the PRIORITY of your REFERENCES. 7. As a CFA member, CONDUCT yourself with DEFERENCE.

Question 40

Major subjects

Answer 40

1. Professionalism 2. Integrity of Capital Markets 3. Clients 4. Employers 5. Investment Analysis Recommendations and Actions 6. Conflicts of Interests 7. Responsibilities as a CFA member