Q9. An analyst has several groups of clients who are categorized according to their specific needs. Compared to research reports distributed to all of the clients, reports for a specific group:

A)   will not be allowed because it violates the Standard III(B), Fair Dealing.

B)   may generally exclude more basic facts.

C)   will definitely include more basic facts.

Q10. An analyst finds a stock with historical returns that are not correlated with interest rate changes. The analyst writes a report for his clients that have large allocations in fixed-income instruments and emphasizes the observed lack of correlation. The clients with allocations of fixed income instruments are the only clients to see the report. According to Standard V(B), Communication with Clients and Prospective Clients, the analyst has:

A)   violated the Standard concerning fair dealings with all clients.

B)   violated the article in the Standard concerning facts and opinions.

C)   not violated the Standard.

Q11. Joni Black, CFA, works for a portfolio management firm. Black is a partner of the firm and is primarily responsible for managing several large pension plans. Black has just finished a research report in which she recommends Zeta Corporation as a “Strong Buy.” Her rating is based on solid management in a growing and expanding industry. She just handed the report to the marketing department of the firm for immediate dissemination. Upon returning to her desk she notices a news flash by CNN reporting that management for Zeta Corporation is retiring. Black wishes she did not recommend Zeta Corporation as a “Strong Buy,” but believes the corporation is still a good investment regardless of the management. What course of action for Black is best? Black:

A)   may send out the report as written as long as a follow up is disseminated within a reasonable amount of time reflecting the changes in management.

B)   should report the new information to her immediate supervisor so that they can determine whether or not the marketing department should send out the report as written.

C)   should revise the recommendation based on this new information.

答案和详解如下：

Q9. An analyst has several groups of clients who are categorized according to their specific needs. Compared to research reports distributed to all of the clients, reports for a specific group:

A)   will not be allowed because it violates the Standard III(B), Fair Dealing.

B)   may generally exclude more basic facts.

C)   will definitely include more basic facts.

Correct answer is B)

According to Standard V(B), an analyst can use reasonable judgment regarding the exclusion of some facts and should include more basic facts for reports to wider audiences. The key issue is that analysts should tailor their reports to the intended audience.

Q10. An analyst finds a stock with historical returns that are not correlated with interest rate changes. The analyst writes a report for his clients that have large allocations in fixed-income instruments and emphasizes the observed lack of correlation. The clients with allocations of fixed income instruments are the only clients to see the report. According to Standard V(B), Communication with Clients and Prospective Clients, the analyst has:

A)   violated the Standard concerning fair dealings with all clients.

B)   violated the article in the Standard concerning facts and opinions.

C)   not violated the Standard.

Correct answer is C)       

Recommending a stock whose return is uncorrelated with interest rate changes is appropriate for the clients described in the problem. Emphasizing the lack of correlation is appropriate as long as the analyst makes no guarantees concerning the relationship in the future. Reporting historical correlation is a presentation of fact, and is not in violation. The analyst is free to show the report only to investors for whom the investment is appropriate.

Q11. Joni Black, CFA, works for a portfolio management firm. Black is a partner of the firm and is primarily responsible for managing several large pension plans. Black has just finished a research report in which she recommends Zeta Corporation as a “Strong Buy.” Her rating is based on solid management in a growing and expanding industry. She just handed the report to the marketing department of the firm for immediate dissemination. Upon returning to her desk she notices a news flash by CNN reporting that management for Zeta Corporation is retiring. Black wishes she did not recommend Zeta Corporation as a “Strong Buy,” but believes the corporation is still a good investment regardless of the management. What course of action for Black is best? Black:

A)   may send out the report as written as long as a follow up is disseminated within a reasonable amount of time reflecting the changes in management.

B)   should report the new information to her immediate supervisor so that they can determine whether or not the marketing department should send out the report as written.

C)   should revise the recommendation based on this new information.

Correct answer is C)         

This question is related to Standard V(B) which states that CFA Institute members should use reasonable judgment regarding the inclusion or exclusion of relevant factors in research reports. The change in management was a relevant factor and must be disclosed before dissemination.