Ethics WTF Questions Part II question, basis, principal, everything, net

Muddahudda

#66 So programmers say everything is fine with a new system. What else are you supposed to do as a supervisor? CFAI wants you to micromanage?

#67 What the heck are they talking about. What's all this "order's may be executed on a net basis", "riskless principal trades."

#69-#70 Fine example of a deliberatly missleading question. Too infuriating to even get into.

lcai

Thank you for the post. I was doing these and found difficulty too.

Garcia immediately shorts the stock after an analyst issues a sell recommendation.
I would assume that he is in breach because he does not do enough research / have enough reasonable basis to do the trade.

I do not understand why Q.70 is not B. --> He does not have reasonable basis for the trade.

Correct answer is that he is in possession of material non public info.... Weird...

Analti_Calte

Yes! You are referring to Q.57.. Quite tricky...

For Q.70, Why is the analyst downgrade or upgrade material non-public information?

zwjy

your time might be better served covering other weaker areas than diving deep into the mysteries of one-off WTF questions. i get caught up doing this and have to stop myself. usually not worth your time to drive yourself crazy over deez

skycfa

I agree - because at the end of the day there is enough grey in these Ethics question that some will be a crap shoot - experience and a practical bent of mind can work to your disadvantage on some of these points.

Darien

Where are these questions

bpdulog

CFAI Volume 1, Reading 2, End of chapter problems. There are 82 problems in this reading, and we are talking about the ones near the end.

wake2000

Do the item sets, the other questions are relatively straightfoward.

NO EXCUSES