What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Ethical and Professional Standards
Standard IV(B) Additional Compensation practice questions
Standard IV(B) Additional Compensation is part of CFA Level I Ethical and Professional Standards. Ethics questions test judgment under the Code and Standards, especially duties to clients, employers, markets, and the CFA Program. Use this page to review the controlling ideas, then work through 3 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Ethical and Professional Standards
Standard IV(B) Additional Compensation
A portfolio manager offered extra compensation by a client for superior performance should most appropriately obtain:
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Standard IV(B) Additional Compensation
A client offers a manager a personal bonus if the account beats its benchmark. The manager tells the client yes and informs the employer afterward. The manager most likely:
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Standard IV(B) Additional Compensation
A client offers a portfolio manager 10% of returns above benchmark in addition to the manager's salary and employer bonus. The manager may accept only if she:
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