2018LevelIMockExamPMTheafternoonsessionofthe2018LevelICharteredFinancialAnalyst®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.22018LevelIMockExamPM2018LEVELIMOCKEXAMPM1WhichofthefollowingisleastlikelyarequirementoftheGIPSstandards?Firmsarerequiredto:Ahavetheirperformancerecordsverifiedbyanindependentthirdparty.Bincludealldiscretionary,fee-payingportfoliosinatleastonecomposite.Cpresentaminimumoffiveyearsofannualinvestmentperformancecompli-antwithGIPSstandards.Aiscorrectbecauseitisarecommendationbutnotarequirementthatfirmsobtaininde-pendentthird-partyverificationtoclaimGIPScompliance.Firmsarerequiredtoincludealldiscretionary,fee-payingportfoliosinatleastonecomposite.TheymustalsopresentaminimumoffiveyearsofannualinvestmentperformancecompliantwithGIPSstandards.Bisincorrectbecauseitisarequirement.Cisincorrectbecauseitisarequirement.GlobalInvestmentPerformanceStandards(GIPS)LOSa2IncaseswhereapplicablelocallawsgoverningcalculationandpresentationofinvestmentperformanceconflictwiththeGIPSstandards,firmsare:AunabletoclaimGIPScomplianceincaseswherelocalregulationsprohibitaccuratecalculation.Brequiredtoca...
