Q15. The statement Stroh made in his recommendation of APX concerning the election of a pro-business chief executive was:

A)   not appropriate because of the way it was mentioned in the recommendation.

B)   appropriate because it did not relate directly to the firms themselves.

C)   appropriate because it was based on information from the public websites of reliable news agencies.

Q16. With respect to the given information and the sell recommendation of IMI, which of the following statements would NOT be allowable in the sell recommendation under the Standards?

A)   IMI is now abandoning its plan to partner in the country.

B)   IMI’s withdrawal was widely believed imminent by the business community of the country.

C)   IMI’s executives cannot recognize a good opportunity when they see it.

Q17. When Stroh answered his friend’s question concerning whether the friend should invest in APX, Stroh was in violation of all of the following Standards EXCEPT:

A)   Standards VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program.

B)   Standard III(C) Suitability.

C)   Standard III(B) Fair Dealing.

答案和详解如下：

Q15. The statement Stroh made in his recommendation of APX concerning the election of a pro-business chief executive was:

A)   not appropriate because of the way it was mentioned in the recommendation.

B)   appropriate because it did not relate directly to the firms themselves.

C)   appropriate because it was based on information from the public websites of reliable news agencies.

Correct answer is A)

According to Standard V(B), Communication with Clients and Prospective Clients, investment analysis and recommendations should clearly differentiate facts from opinions. Although it is a widely held opinion that the pro-business candidate would win, no one can predict the future. None of the other reasons are valid.

Q16. With respect to the given information and the sell recommendation of IMI, which of the following statements would NOT be allowable in the sell recommendation under the Standards?

A)   IMI is now abandoning its plan to partner in the country.

B)   IMI’s withdrawal was widely believed imminent by the business community of the country.

C)   IMI’s executives cannot recognize a good opportunity when they see it.

Correct answer is C)

Stroh has no reasonable basis for saying that IMI’s executives cannot recognize a good opportunity when they see it. The CFO of IMI did not give a reason for their not partnering in the country. IMI may have better opportunities elsewhere. Had the CFO said that the statistics concerning comparative advantages were not valid, for example, Stroh might have more of a basis to be critical of the management. The other statements are facts that Stroh can provide adequate support for.

Q17. When Stroh answered his friend’s question concerning whether the friend should invest in APX, Stroh was in violation of all of the following Standards EXCEPT:

A)   Standards VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program.

B)   Standard III(C) Suitability.

C)   Standard III(B) Fair Dealing.

Correct answer is A)

The Standard III(B) indicates that members shall deal fairly and objectively with all clients when disseminating recommendations and material changes. Fair dealing requires that members make every effort to treat all clients, whether they are individuals or institutions, in a fair and impartial manner. By essentially making a recommendation to his friend first, Stroh breached the standard because he disadvantaged his clients in favor of his friend. Also, Stroh still had to verify what the friend said about the comparative advantage was true. Standard V(A), Diligence and Reasonable Basis, and that the investment would be appropriate for his friend Standard III(C), Suitability. Mentioning his training, which included the CFA designation, was not inappropriate.