2018LevelIMockExamAMThemorningsessionofthe2018LevelICharteredFinancialAnalyst®MockExaminationhas120questions.Tobestsimulatetheexamdayexperience,candidatesareadvisedtoallocateanaverageofoneandahalfminutesperquestionforatotalof180minutes(3hours)forthissessionoftheexam.QuestionsTopicMinutes1–18EthicalandProfessionalStandards2719–33Quant22.534–45Econ1846–69FinancialReportingandAnalysis3670–78CorporateFinance13.579–86PortfolioManagement1287–98Equity1899–110FixedIncome18111–115Derivatives7.5116–120AlternativeInvestments7.5Total:180Byaccessingthismockexam,youagreetothefollowingtermsofuse:ThismockexamisprovidedtocurrentlyregisteredCFAcandidates.Candidatesmayviewandprinttheexamforpersonalexamprepara-tiononly.Thefollowingactivitiesarestrictlyprohibitedandmayresultindisciplinaryand/orlegalaction:accessingorpermittingaccessbyanyoneotherthancurrently-registeredCFAcandidates;copying,postingtoanywebsite,emailing,distributingand/orreprintingthemockexamforanypurpose©2017CFAInstitute.Allrightsreserved.22018LevelIMockExamAM2018LEVELIMOCKEXAMAM1AndrewSmith,CFA,worksforGranite,acommercialbankthatalsohasasizeablesellsideresearchdivision.Smithispresentingfinancingsolutionstoapotentialbusinessclient,DynamicMaterialsCorp.Aspartofhispresentation,SmithmentionsthatGranitewillinitiateresearchcoverageonDynamic.IsSmith’sarrangementmostlikelyappropriatewithregardstotheCFAStandards?AYes.BNo,becauseSmithcannotoffertoprovideresearchcoverageonacompanyiftheybecomeacorporatefinanceclient.CNo,becauseGranitecannotprovideresearchcoverageonacorporatefinanceclientasthisconstitutesaviolationofresearchindependence.AiscorrectbecauseunderStandardI(B)membersandcandidatesmustprotecttheirindependenceandobjectivity.Agreeingtoprovideobjectiveresearchcoverageofacompanydoesnotconstituteaviolationofthisstandardprovidedtheanalystwritingthereportisfreetocomeupwiththeirownindependentconclusion.SmithcanagreetoprovideresearchcoveragebutcannotcommitGranite’sresearchdepartmenttoprovidingafavorablerecommendatio...
