13 CFA Sample Questions Free for Level 2 with Answers on Ethics

Anyone who already takes the CFA exam realizes that performance on the ethics section can mean the difference between a pass and fail the exam. Not just for Level 1, it’s totally exact for both Level 2 and Level 3. Be comfortable with Ethics by practising 13 CFA Sample Questions Free for Level 2 with Answers on Ethics. Numerous multiple choice questions with instant answers mimicking the actual CFA exam will help you have a good performance in ethics. More surprisingly, they can push a candidate with a poorly ethical foundation into the group of strong-base candidates. Therefore, it may be best to start your CFA practice with this test right now to master all the knowledge and apply it into the exam. Let’s get started!

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Professional Conduct Program

• CFA Institute Mission
• SPC I: Professionalism A-D
• PCP
• SPC 3: Duties to Clients A-E

A) No acting or causing others to act on material non-public informationB) Not market manipulation (prices or volume) with intent to mislead

• SPC 2: Integrity of Capital Markets A-B
• SPC 4: Duties to Employers A-C
• SPC I: Professionalism A-D
• SPC 3: Duties to Clients A-E

A) Loyalty, Prudence, and CareB) Fair DealingC) Suitability. Members must: make a reasonable inquiry into investment experience, risk, return objectives and financial constraints prior to making any investment recommendations or taking investment action and must reassess and update regularly, determine an investment is suitable and judge in the context of the client's total portfolio. Investments must be consistent with the stated style.D) Performance presentation must be fair, accurate and complete.E) Conf

• SPC I: Professionalism A-D
• SPC 3: Duties to Clients A-E
• SPC 4: Duties to Employers A-C
• CFA Institute Mission

To lead the investment profession globally by promoting the highest standards of ethics, education and professional excellence for the ultimate benefit of society.

• CFA Institute Mission
• SPC 3: Duties to Clients A-E
• SPC I: Professionalism A-D
• PCP

1) Act with integrity, competence and diligence, and in an ethical manner with other participants in global capital markets2) Place the integrity of the investment profession and the interests of clients above their own personal interests3) User reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, or engaging in other professional activities4) Practice and encourage others to practice in a professional and ethical manner that

• SPC I: Professionalism A-D
• CFA Institute Mission
• SPC 3: Duties to Clients A-E
• Six components of the CoE (6)

Members and candidates must not knowingly make any misrepresentations relating to investment analysis, plagiarism.

• Standard 1 D - Misconduct
• Standard 1 A - Knowledge of the law
• Standard 1 Professionalism - Misrepresentation
• Standard 2 A - Material Nonpublic Informatiob

Must understand and comply with all applicable laws, rules and regulations including the cfa code of ethics. In the event of conflict must comply with the more strict. Must not participate or assist.

• Standard 1 A - Knowledge of the law
• Standard 2 A - Material Nonpublic Informatiob
• Test of correlation
• Standard 1 D - Misconduct

Must not engage in any professional conduct involving dishonesty fraud or commit any act that reflects adversely on their professional reputation.

• Standard 1 D - Misconduct
• Standard 1 A - Knowledge of the law
• Test of correlation
• Standard 2 A - Material Nonpublic Informatiob

1) Professionalism2) Integrity of Capital Markets3) Duties to Clients4) Duties to Employers5) Investment analysis, recommendations and actions6) Conflicts of interest7) Responsibilities of a CFA member or candidate

• Six components of the CoE (6)
• SPC I: Professionalism A-D
• Standards of Professional Conduct (7)
• SPC 3: Duties to Clients A-E

Who possess material non public info must not act or not cause others to act on the info.

• Standard 2 A - Material Nonpublic Informatiob
• Standard 1 Professionalism - Misrepresentation
• Standard 1 D - Misconduct
• Standard 1 A - Knowledge of the law

...

• SPC I: Professionalism A-D
• SPC 4: Duties to Employers A-C
• SPC 3: Duties to Clients A-E
• SPC 2: Integrity of Capital Markets A-B

Its a two tailed test with n-2 degrees of freedom. T = [r ( n-2)^(1/2)]/ [ (1-r^2)^(1/2)]

• Standard 1 A - Knowledge of the law
• Standard 1 Professionalism - Misrepresentation
• Test of correlation
• Standard 1 D - Misconduct

A) Members must understand and comply with all applicable laws, rules and regulations. In the event of conflict, members must use the more strict rule. Must not knowingly assist with and must dissassociate from any violation.B) Members must use reasonable judgment and achieve and maintain independence and objectivity in professional activities. Must not offer, solicit, or accept any gift, benefit, compensation or consideration that reasonably could be expected to compromise their own or another's independen

• Standards of Professional Conduct (7)
• SPC 4: Duties to Employers A-C
• SPC I: Professionalism A-D
• SPC 3: Duties to Clients A-E