easy · CFA Level I ethics

A trader at Kestrel Grid is executing a large block trade for several clients. One of the clients is the trader's father, who pays a standard advisory fee. The trade is filled in multiple lots throughout the day at different prices. The trader should:

  1. Give the father's account the worst (highest) price of the day to ensure no other client is disadvantaged.
  2. Assign the father's account the average price of the execution, just like all other participating clients.
  3. Give the father's account the best (lowest) price of the day to demonstrate loyalty.

Sign up free to see the explanation and track your rank →

More CFA Level I ethics practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 77,980+ practice questions, 26,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials