Monday, September 10, 2012

Practice Questions - Reading 2

CFA provides 40 practice questions on the Code/Standards - let's see how they go.

Start time - 7:45 pm
End - 8:40 pm
Approx 1 hour (about good pace)

35/40 correct

Not bad, 87.5% - well above the 70% target though I'm not sure how these questions compare to the actual exams.

Notes on difficult/incorrects:
  • Needed to know the rules for using CFA in business materials better
  • Thru question 15, only 2 correct answers were A - not sure if there is favoritism toward B and C in general on the exam
  • 'Correct' for CFA purposes does not mean realistic or practical
    • One example was of a all-expense paid trip to a company for an analyst - all expenses appeared reasonable - but the 'best' course of action is to pay for the trip yourself
    • This would never happen in real life, but for CFA Exam purposes, it is the 'best'
  • If providing banking services to a co, a permanent ban on trading that co's securities is not appropriate - a quarantine and/or temporary ban is better
  • If you are out of work, you might be able to participate in incentive schemes
  • Need to look more into what exactly 'soft dollar' arrangements are and how they work

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