Question #42 - Reading 42.5 Standards of Professional Conduct Guidance for Standards V

Reading: Reading 42.5 Standards of Professional Conduct Guidance for Standards V

PDF File: Reading 42.5 Standards of Professional Conduct Guidance for Standards V.pdf

Page: 22

Status: Incorrect

Correct Answer: A

Your Answer: A

Shared Context

- With regard to Ferrazzo's purchase of Bradley stock, she violated: A) Standard III(E): Preservation of Confidentiality, but not Standard V(A): Diligence and Reasonable Basis. B) Standard V(A): Diligence and Reasonable Basis, but not Standard II(A): Material Nonpublic Information. C) Standard III(E): Preservation of Confidentiality and Standard II(A): Material Nonpublic Information.

Question

Regarding the high-tech stock model, which of the following actions is least likely to help Sandro avoid violating the standards regarding plagiarism and research reports?

Answer Choices:

A. Acknowledging Wright’s development of the initial model

C. Providing basic information about technology stocks in the research report.

Explanation

To comply with Standard I(C): Misrepresentation, Sandro should have gotten permission from Wright to copy the spreadsheets. The Standard also requires that Sandro identify Wright as the source of the initial model despite the fact that she made major changes to it. The plagiarism standard permits publishing factual information from Moody's and S&P without acknowledgment, but the use of different data sources could affect the performance of the model, and should be disclosed to satisfy Standard V(B): Communication with Clients and Prospective Clients. Because the report is going to an individual client, Sandro need not provide basic information about technology stocks, according to Standard V(B): Communication with Clients and Prospective Clients. (Module 42.8, LOS 42: V(A))

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