Question #43 - 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: 23

Status: Incorrect

Correct Answer: A

Your Answer: B

Shared Context

- 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? A) Acknowledging Wright’s development of the initial model. B) Acknowledging Standard & Poor’s as the original data source and Moody’s Investors Service as the new data source. C) Providing basic information about technology stocks in the research report.

Question

The production of the advertising represented a violation of:

Answer Choices:

A. Standard IV(A): Loyalty to Employer and Standard I(C): Misrepresentation

B. Standard IV(C):Responsibilities of Supervisors, but not Standard VII(B): Reference to CFA Institute, the CFA Designation, and the CFA Program

C. Standard VII(B): Reference to CFA Institute, the CFA Designation, and the CFA Program, and Standard I(C): Misrepresentation

Explanation

Sandro's description of her CFA standing is truthful in this case because she is still technically a CFA candidate. Sandro is not allowed to imply that she can continue to produce superior returns, and as such violated the misrepresentation standard. Ferrazzo, in her supervisory role, should have prevented the violation but did not. Standard IV(A): Loyalty to Employer refers to independent practice, and is not relevant to this situation. (Module 42.8, LOS 42: V(A))

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