Reading 2-V: Standards of Professional Conduct & Guidance: Inv

Reading 2-V: Standards of Professional Conduct & Guidance: Investment Analysis, Recommendations, and Action

LOS A.: Diligence and Reasonable Basis

1、An analyst writes a report and includes the forecasts of an econometric model developed by the firm’s research department. The analyst identifies the source of the forecast and includes all the relevant statistics concerning the model and his opinion of the model’s accuracy. With respect to Standard V(A), Diligence and Reasonable Basis, the analyst has:

A)   violated the Standard by including quantitative details in a report.

B)   violated the Standard by giving his opinion of the accuracy of a model developed by his research department.

C)   violated the Standard by not testing the model himself.

D)   complied with the Standard.

The correct answer was D)     

Including quantitative details in a report is not a violation of the Standard. The analyst has more of an obligation to give an opinion on the accuracy of the model than withhold such an opinion. Although the analyst should use reasonable care to verify information included in a report, retesting models developed by the research department of a firm is not explicitly required.

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[此贴子已经被作者于2008-1-12 18:15:26编辑过]