2.) With regard to managing portfolios for Twain as well as for his friends, Litman should most likely undertake which of the following to ensure compliance with CFA Institute Standards of Professional Conduct? He should: A. obtain written consent from Twain and his friends. B. inform his immediate supervisor. C. do nothing further. Answer = A According to Standard IV(B)–Additional Compensation Agreements because Litman must obtain written permission from all parties involved when conflicts of interest are present. “Guidance for Standards I–VII,” CFA Institute Standard IV(B)

) WITH REGARD TO MANAGING PORTFOLIOS FOR TWAIN AS WELL AS FOR HIS FR...

CFA MOCK EXAM LEVEL III MOCK EXAM VERSIONC ANSWERS 2014

2.) With regard to managing portfolios for Twain as well as for his friends, Litman should

most likely undertake which of the following to ensure compliance with CFA Institute

Standards of Professional Conduct? He should:

obtain written consent from Twain and his friends.

inform his immediate supervisor.

do nothing further.

Answer = A

According to Standard IV(B)–Additional Compensation Agreements because Litman

must obtain written permission from all parties involved when conflicts of interest are

present.

“Guidance for Standards I–VII,” CFA Institute

Standard IV(B)