Q12. 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)   complied with the Standard.

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

Q13. In the process of recommending an investment, in order to comply with Standard V(A), Diligence and Reasonable Basis, a CFA Institute member must:

A)   do both of these.

B)   have a reasonable and adequate basis for the recommendation.

C)   support a recommendation with appropriate research and investigation.

答案和详解如下：

Q12. 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)   complied with the Standard.

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

Correct answer is B)

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.

Q13. In the process of recommending an investment, in order to comply with Standard V(A), Diligence and Reasonable Basis, a CFA Institute member must:

A)   do both of these.

B)   have a reasonable and adequate basis for the recommendation.

C)   support a recommendation with appropriate research and investigation.

Correct answer is A)

Both of these are explicitly required by Standard V(A).

thanks

ding