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NEW QUESTION: 1
Chester Brothers, LLC, is an investment management firm with $200 million in assets under management.
Chester's equity style is described to clients as a "large cap core" strategy. One year ago, Chester instituted a new compensation plan for its equity portfolio managers. Under this new plan, each portfolio manager receives an annual bonus based upon that manager's quarterly performance relative to the S&P
500 index. For each quarter of aut-performance, the manager receives a bonus in the amount of 20% of his regular annual compensation. Chester has not disclosed this new plan to clients. Portfolio managers at Chester are not bound by non-compete agreements.
Fames Rogers, CFA, and Karen Pierce, CFA, are both portfolio managers affected by the new policy.
Rogers out-performed the S&P 500 index in each of the last three quarters, largely because he began investing his clients1 funds in small cap securities. Chester has recently been citing Rogers's performance in local media advertising, including claims that "Chester's star manager, James Rogers, has outperformed the S&P 500 index in each of the last three quarters." The print advertising associated with the media campaign includes a photograph of Rogers, identifying him as James Rogers, CFA. Below his name is a quote apparently attributable to Rogers saying "as a CFA chartcrholdcr I am committed to the highest ethical standards." A few weeks after the advertising campaign began, Rogers was approached by the Grumpp Foundation, a local charitable endowment with $3 billion in assets, about serving on their investment advisory committee.
The committee meets weekly to review the portfolio and make adjustments as needed. The Grumpp trustees were impressed by the favorable mention of Rogers in the marketing campaign. In making their offer, they even suggested that Rogers could mention his position on the advisory committee in future Chester marketing material. Rogers has not informed Chester about the Grumpp offer, but he has not yet accepted the position.
Pierce has not fared as well as Rogers. She also shifted into smaller cap securities, but due to two extremely poor performing large cap stocks, her performance lagged the S&P 500 index for the first three quarters. After an angry confrontation with her supervisor, Pierce resigned. Pierce did not take any client information with her, but when she left she did take a copy of a Pierce has not fared as well as Rogers.
She also shifted into smaller cap securities, but due to two extremely poor performing large cap stocks, her performance lagged the S&P 500 index for the first three quarters. After an angry confrontation with her supervisor, Pierce resigned. Pierce did not take any client information with her, but when she left she did take a copy of a computer model she developed while working al Chester, as well as the most recent list of her buy recommendations, which was created from the output of her computer valuation model. Pierce soon accepted a position at a competing firm, Cheeri Group. On her first day at Cheeri, she contacted each of her five largest former clients, informing them of her new employment and asking that they consider moving their accounts from Chester to Cheeri. During both telephone conversations and e-mails with her former clients, Pierce mentioned that Chester had a new compensation program that created incentives for managers to shift into smaller cap securities.
Cheeri has posted Pierce's investment performance for the past five years on its Web site, excluding the three most recent quarters. The footnotes to the performance information include the following two statements:
Statement 1: Includes large capitalization portfolios only.
Statement 2: Results reflect manager's performance at previous employer.
Assuming Rogers would like to accept the offer to serve on the Grumpp investment advisory committee, Rogers's obligations under the CFA Institute Standards require that he:
A. accept the Grumpp committee position and disclose his acceptance as soon as possible to his supervisor.
B. refuse to serve on the Grumpp committee.
C. accept the Grumpp committee position only after disclosing the offer to his supervisor.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Standard VI(A). Rogers must discuss the offer with supervisory personnel at Chester before accepting the offer. His employer then has the opportunity to evaluate the effect of the offer on Rogers's ability to continue to perform his duties for Chester. The foundation is very large, and the position appears likely to consume much of Rogers's time and effort. If compensation is involved, Rogers would have to decline the offer unless Chester consented to the arrangement. (Study Session I, LOS 2.a)
NEW QUESTION: 2
An old router has been replaced by a FortiWAN device. The FortiWAN has inherited the router's management IP address and now the network administrator needs to remove the old router from the FortiSIEM configuration.
Which two statements are true about this operation? (Choose two.)
A. FortiSIEM will discover a new device for the FortiWAN with the same IP.
B. FortiSIM will move the old router device into the Decommission folder.
C. The old router will be completely deleted from FortiSIEM's CMDB.
D. FotiSEIM needs a special syslog for FortiWAN.
Answer: A,C
NEW QUESTION: 3
What should be the focus of your first sales conversation with a customer?
A. presenting special offers
B. offering discounts
C. selecting the solution
D. uncovering their needs
Answer: D
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