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Question 1 of 10
1. Question
Consultants are prohibited from using communications, written or oral, in conjunction with professional services that contain false, fraudulent, misleading, deceptive, or unfair statements or claims. This includes which of the following?
I. A statement that contains a misrepresentation of communication.
II. A statement that fails to make full disclosure of relevant facts in a way that is likely to mislead
or deceive.
III. A statement that creates false or unjustified expectations of favorable results.
IV. A statement that contains other representations or implications that will cause a person misunderstand or be deceived.Correct
Consultants are prohibited from using communications, written or oral, in conjunction with professional services that contain false, fraudulent, misleading, deceptive, or unfair statements or claims. This includes, but is not limited to, a statement or claim that:
Contains a misrepresentation of fact
Fails to make full disclosure of relevant facts in a way that is likely to mislead
or deceive
Creates false or unjustified expectations of favorable results
Implies educational or professional attainments or licensing recognition not supported
in fact
Represents that professional services can or will be competently performed for a
stated fee when this is not the case or makes representations with respect to fees
for professional services that do not disclose all variables that may reasonably
be expected to affect the fees that will in fact be charged
Contains other representations or implications that in reasonable probability will
cause a person of ordinary prudence to misunderstand or be deceivedIncorrect
Consultants are prohibited from using communications, written or oral, in conjunction with professional services that contain false, fraudulent, misleading, deceptive, or unfair statements or claims. This includes, but is not limited to, a statement or claim that:
Contains a misrepresentation of fact
Fails to make full disclosure of relevant facts in a way that is likely to mislead
or deceive
Creates false or unjustified expectations of favorable results
Implies educational or professional attainments or licensing recognition not supported
in fact
Represents that professional services can or will be competently performed for a
stated fee when this is not the case or makes representations with respect to fees
for professional services that do not disclose all variables that may reasonably
be expected to affect the fees that will in fact be charged
Contains other representations or implications that in reasonable probability will
cause a person of ordinary prudence to misunderstand or be deceived -
Question 2 of 10
2. Question
Consultants shall disclose all matters relevant to their intended comment, testimony, or action. This disclosure includes the following except?
I. Conflicts of interest concerning clients, prospects, employers, firms, or individuals.
II. Beneficial compensation, fees, or ownership.
III. The inclusion of relevant factors in the preparation of comment, testimony, recommendations, or actions.
IV. The exclusion of materials that are relevant in the preparation of plausible decisions.Correct
Consultants shall disclose all matters relevant to their intended comment, testimony, or action. This disclosure includes, but is not limited to:
Conflicts of interest concerning clients, prospects, employers, firms, or individuals
Beneficial compensation, fees, or ownership
The inclusion or exclusion of material or relevant factors in the preparation of comment, testimony, recommendations, or actionsIncorrect
Consultants shall disclose all matters relevant to their intended comment, testimony, or action. This disclosure includes, but is not limited to:
Conflicts of interest concerning clients, prospects, employers, firms, or individuals
Beneficial compensation, fees, or ownership
The inclusion or exclusion of material or relevant factors in the preparation of comment, testimony, recommendations, or actions -
Question 3 of 10
3. Question
If consultants wish to use the work of others, they must obtain the necessary permissions and include appropriate acknowledgments such as identifying which of the following?
I. The author
II. The publisher
III. The source of the material
IV. The conclusions made by others that have been derived from the factual informationCorrect
If consultants wish to use the work of others, they must obtain the necessary permissions and include appropriate acknowledgments. Such acknowledgement includes, but is not limited to, identifying the author, publisher, and/or source of the material. While factual information such as that published by recognized financial and statistical reporting services may be used without acknowledgement, credit must be given to conclusions made by others that have been derived from the factual information.
Incorrect
If consultants wish to use the work of others, they must obtain the necessary permissions and include appropriate acknowledgments. Such acknowledgement includes, but is not limited to, identifying the author, publisher, and/or source of the material. While factual information such as that published by recognized financial and statistical reporting services may be used without acknowledgement, credit must be given to conclusions made by others that have been derived from the factual information.
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Question 4 of 10
4. Question
Which of the following criteria is(are) essential to a consultant’s responsibility to conduct business and personal affairs professionally and ethically?
I. Honesty
II. Trustworthiness
III. Attitude
IV. Fitness to practice as a consulting professionalCorrect
Consultants have a responsibility to avoid conduct, in both their business and personal lives, that exhibits a lack of honesty, trustworthiness, or fitness to practice as a consulting professional.
Incorrect
Consultants have a responsibility to avoid conduct, in both their business and personal lives, that exhibits a lack of honesty, trustworthiness, or fitness to practice as a consulting professional.
-
Question 5 of 10
5. Question
Which of the following examples is(are) not ways consultants should act?
I. Acts resulting in compromising the integrity of the consulting profession as a whole.
II. Acts resulting in conviction of a felony.
III. Acts resulting in conviction of a misdemeanor involving moral turpitude.
IV. Conduct that compromises the integrity of the CIMA or CIMC certification.Correct
Consultants shall not engage in any acts of dishonesty, fraud, or misrepresentation that reflect negatively
on professional competence or acts that indicate a general disrespect for the law.
Examples of such acts can include, but are not limited to:
Acts resulting in conviction of a felony
Acts resulting in conviction of a misdemeanor involving moral turpitude (e.g.,lying, cheating, stealing)
Conduct that compromises the integrity of the CIMA or CIMC certification or the
consulting profession as a wholeIncorrect
Consultants shall not engage in any acts of dishonesty, fraud, or misrepresentation that reflect negatively
on professional competence or acts that indicate a general disrespect for the law.
Examples of such acts can include, but are not limited to:
Acts resulting in conviction of a felony
Acts resulting in conviction of a misdemeanor involving moral turpitude (e.g.,lying, cheating, stealing)
Conduct that compromises the integrity of the CIMA or CIMC certification or the
consulting profession as a whole -
Question 6 of 10
6. Question
Any conduct that reflects poorly on the individual, the employer or firm, or the profession as a whole should
not be tolerated. General compliance with this standard can be enhanced by strict observation of the following broad guidelines except?
I. Abide by all statutory and regulatory requirements involving the delivery of consulting services.
II. Participate in IMCA activities designed to improve the consulting profession and uphold its reputation.
III. Establish and maintain a standard of excellence in all aspects of investment management consulting.
IV. Maintain the highest standard of personal conduct at all times.Correct
Any conduct that reflects poorly on the individual, the employer or firm, or the profession as a whole should
not be tolerated. General compliance with this standard can be enhanced by strict observation of the following broad guidelines:
Abide by all statutory and regulatory requirements involving the delivery of consulting services.
Establish and maintain a standard of excellence in all aspects of investment management consulting.
Participate in IMCA activities designed to improve the consulting profession and uphold its reputation.
Maintain the highest standard of personal conduct at all times.Incorrect
Any conduct that reflects poorly on the individual, the employer or firm, or the profession as a whole should
not be tolerated. General compliance with this standard can be enhanced by strict observation of the following broad guidelines:
Abide by all statutory and regulatory requirements involving the delivery of consulting services.
Establish and maintain a standard of excellence in all aspects of investment management consulting.
Participate in IMCA activities designed to improve the consulting profession and uphold its reputation.
Maintain the highest standard of personal conduct at all times. -
Question 7 of 10
7. Question
Before entering into any compensation arrangement that has not been authorized or granted by the consultant’s employer, the consultant must do which of the following?
I. Arrange time for aprroval
II. Disclose approval for the arrangement
III. Obtain approval for the arrangement
IV. Discuss with management on the arrangement in writingCorrect
Before entering into any compensation arrangement that has not been authorized or granted by the consultant’s employer, the consultant must first disclose and obtain approval for the arrangement in writing.
Incorrect
Before entering into any compensation arrangement that has not been authorized or granted by the consultant’s employer, the consultant must first disclose and obtain approval for the arrangement in writing.
-
Question 8 of 10
8. Question
Investment Management Consultants Association (IMCA) has established standards for investment performance reporting. Specifically, these standards cover the following except?
I. The collection of performance information related to manager search.
II. The analysis of performance information related to manager search.
III. The reporting of performance information related to manager search.
IV. The collection and analysis on reports of performance results to clients.Correct
Investment Management Consultants Association (IMCA) has established standards for investment performance reporting. Specifically, these standards cover the collection, analysis, and reporting of performance information related to manager search and analysis and the reporting of performance results to clients.
Incorrect
Investment Management Consultants Association (IMCA) has established standards for investment performance reporting. Specifically, these standards cover the collection, analysis, and reporting of performance information related to manager search and analysis and the reporting of performance results to clients.
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Question 9 of 10
9. Question
The consultant may present model portfolio results to a client as supplemental information, subject to which of the following constraints?
I. The consultant should provide the client with full disclosure concerning the methodology used and assumptions made. A statement that no assets were actually managed using the model must be included.
II. Model portfolio results should not be linked with actual results.
III. The investment manager should be encouraged to continue to calculate model portfolio results after actual implementation of the investment product to facilitate analysis and comparison by the consultant.
IV. The consultant should provide the client with full disclosure concerning the application of various methods proven to succeed in previous clients’ history.Correct
The consultant may present model portfolio results to a client as supplemental information, subject to the following constraints:
1. The consultant should provide the client with full disclosure concerning the methodology used and assumptions made. A statement that no assets were actually managed using the model must be included.
2. Model portfolio results should not be linked with actual results.
3. The investment manager should be encouraged to continue to calculate model portfolio results after actual implementation of the investment product to facilitate analysis and comparison by the consultant.Incorrect
The consultant may present model portfolio results to a client as supplemental information, subject to the following constraints:
1. The consultant should provide the client with full disclosure concerning the methodology used and assumptions made. A statement that no assets were actually managed using the model must be included.
2. Model portfolio results should not be linked with actual results.
3. The investment manager should be encouraged to continue to calculate model portfolio results after actual implementation of the investment product to facilitate analysis and comparison by the consultant. -
Question 10 of 10
10. Question
The consultant should review which of the following information for each performance composite being presented?
I. CFA Institute disclosure(s)
II. The total number and market value of portfolios included in the performance composite.
III. The largest portfolios in the performance composite.
IV. The total number and market value of discretionary portfolios managed in a similar manner but not included in the composite.Correct
The consultant should review the following information for each performance composite being presented:
1. CFA Institute disclosure(s)
2. The total number and market value of portfolios included in the performance composite.
3. The total number and market value of discretionary portfolios managed in a similar manner but not included in the composite.
4. The total number and market value of nondiscretionary portfolios managed in a similar manner but not included in the composite.
5. The average, median, smallest, and largest portfolios in the performance composite.
6. The average asset allocation of the performance composite.
7. An explanation of the criteria by which portfolios are excluded, deleted, or added to the performance composite.
8. The standard deviation of individual portfolio returns included in the performance composite return.
9. The range of returns (and the median return) within the performance composite.
10. Quarterly, annual, and cumulative returns as well as the risk associated with the composite returns.Incorrect
The consultant should review the following information for each performance composite being presented:
1. CFA Institute disclosure(s)
2. The total number and market value of portfolios included in the performance composite.
3. The total number and market value of discretionary portfolios managed in a similar manner but not included in the composite.
4. The total number and market value of nondiscretionary portfolios managed in a similar manner but not included in the composite.
5. The average, median, smallest, and largest portfolios in the performance composite.
6. The average asset allocation of the performance composite.
7. An explanation of the criteria by which portfolios are excluded, deleted, or added to the performance composite.
8. The standard deviation of individual portfolio returns included in the performance composite return.
9. The range of returns (and the median return) within the performance composite.
10. Quarterly, annual, and cumulative returns as well as the risk associated with the composite returns.