Q4. An analyst has found an investment with what appears to be a great return-to-risk ratio. The analyst double-checks the data for accuracy, keeps careful records, and is careful to not make any misrepresentations as he simultaneously sends an e-mail to all his clients with a “buy” recommendation. According to Standard V(A), Diligence and Reasonable Basis, the analyst has:

A)   fulfilled all obligations.

B)   violated the Standard if he does not verify whether the investment is appropriate for all the clients.

C)   violated the Standard by communicating the recommendation via e-mail.

Q5. An analyst receives a report from his research department that summarizes and interprets a recent speech from the chairman of the U.S. Federal Reserve. The summary says that the chairman thinks inflation is under control. Based upon this summary, the analyst says in his next newsletter that inflation is under control. This is a violation of:

A)   Standard V(A), Diligence and Reasonable Basis, and Standard V(B), Communication with Clients and Prospective Clients.

B)   Standard V(A), Diligence and Reasonable Basis, only.

C)   none of the Standards listed here.

Q6. Peggy Green, CFA, is a research analyst following Brown Co. All the information she has gathered suggests the stock should be rated a weak "hold." During a recent lunch, Green overheard another analyst say that the stock should be rated a "buy." Green returns to her office and issues a "buy" recommendation. Green:

A)     has violated CFA Institute Standards of Professional of Conduct because she did not have a reasonable and adequate basis for making this recommendation.

B)   violated CFA Institute Standards of Professional Conduct because she did not seek approval of the change from her firm's compliance director.

C)   has violated CFA Institute Standards of Professional Conduct because she failed to distinguish between fact and opinion.

答案和详解如下：

Q4. An analyst has found an investment with what appears to be a great return-to-risk ratio. The analyst double-checks the data for accuracy, keeps careful records, and is careful to not make any misrepresentations as he simultaneously sends an e-mail to all his clients with a “buy” recommendation. According to Standard V(A), Diligence and Reasonable Basis, the analyst has:

A)   fulfilled all obligations.

B)   violated the Standard if he does not verify whether the investment is appropriate for all the clients.

C)   violated the Standard by communicating the recommendation via e-mail.

 Correct answer is A)

If the analyst had been an investment manager, it would have been inappropriate for him to make a blanket recommendation for all of his clients without considering the unique needs of each. However, the analyst is merely stating that given the qualities of the investment, it is an attractive buy. He has kept adequate records, and made fair disclosure of his rating decision.

Q5. An analyst receives a report from his research department that summarizes and interprets a recent speech from the chairman of the U.S. Federal Reserve. The summary says that the chairman thinks inflation is under control. Based upon this summary, the analyst says in his next newsletter that inflation is under control. This is a violation of:

A)   Standard V(A), Diligence and Reasonable Basis, and Standard V(B), Communication with Clients and Prospective Clients.

B)   Standard V(A), Diligence and Reasonable Basis, only.

C)   none of the Standards listed here.

 Correct answer is A)

The analyst should verify that the research department has interpreted the chairman’s speech correctly. The analyst must make it clear that the statement concerning inflation is only an opinion. No one knows if that is true or not at any point in time. Based upon the given information, we cannot say that the analyst is violating only one standard. The analyst may also be violating plagiarism in accordance with Standard I(C), Misrepresentation. Hence, the answer citing the two standards and not limiting violations to just those two standards is the best answer.

Q6. Peggy Green, CFA, is a research analyst following Brown Co. All the information she has gathered suggests the stock should be rated a weak "hold." During a recent lunch, Green overheard another analyst say that the stock should be rated a "buy." Green returns to her office and issues a "buy" recommendation. Green:

A)     has violated CFA Institute Standards of Professional of Conduct because she did not have a reasonable and adequate basis for making this recommendation.

B)   violated CFA Institute Standards of Professional Conduct because she did not seek approval of the change from her firm's compliance director.

C)   has violated CFA Institute Standards of Professional Conduct because she failed to distinguish between fact and opinion.

 Correct answer is A)

Analysts are required to have a reasonable and adequate basis, supported by appropriate research and investigation, for their recommendations.

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