GIGAMIND

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115 CFA
File:
115.010.10 Reading 1 - Ethics and Trust in the Investment Profession

Reading 1 - Ethics and Trust in the Investment Profession

LOS

a. explain ethics
115.010.10.10 Reading 1 - Ethics and Trust - LOS a. explain ethics

b. describe the role of a code of ethics in describing a profession
115.010.10.20 Reading 1 - Ethics and Trust - LOS b. the role of a code of ethics

c. describe professions and how they establish trust
115.010.10.30 Reading 1 - Ethics and Trust - LOS c. professions establishing trust

d. describe the need for high ethical standards in investment management
115.010.10.40 Reading 1 - Ethics and Trust - LOS d. the need for ethical standards

e. explain professionalism in investment management
115.010.10.50 Reading 1 - Ethics and Trust - LOS e. professionalism in investment

f. identify challenges to ethical behavior
115.010.10.60 Reading 1 - Ethics and Trust - LOS f. challenges to ethical behavior

g. distinguish between ethical and legal standards
115.010.10.70 Reading 1 - Ethics and Trust - LOS g. ethical and legal standards

h. describe a framework for ethical decision making
115.010.10.80 Reading 1 - Ethics and Trust - LOS h. framework for ethical decisions

Practice test results

I read this Reading in 2 days. Now taking the practice quiz at the end of the Reading and recording my actual score here.

SCORE = 10/12 (83.3%)

Q   A   1/0
1   A   0 I chose CoE, correct answer was Standards of Conduct
2   B   1
3   A   1
4   B   1
5   B   1
6   C   1
7   B   1
8   C   1
9   C   1
10  B   1
11  A   0
12  C   1

Wrong answers and their correct answers:

Q1: Benchmarks for minimally acceptable behaviors of community members are:
a. code of ethics
b. laws and regulations
[c]. standards of conduct.

I chose (a), but that is not correct. The Code of Ethics serve as a general guide for how community members should act. It is the Standards of Conduct that serve as benchmarks.

Q12: To maintain trust, the investment management profession must be interdependent with:
a. regulators
b. employers
[c]. investment firms

I chose (a), which is incorrect. Employers and regulators have their own standards and practices which may differ from regulations and standards set by professional bodies.


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  • CFA
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