Q10. 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)   violated CFA Institute Standards of Professional Conduct because she did not seek approval of the change from her firm's compliance director.

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

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

Q11. Wes Smith, CFA, works for Advisors, Inc. In order to remain in compliance with Standard V(A), Diligence and Reasonable Basis, Smith may recommend a security in which of the following situations?

A)   Smith reads a favorable review of the security in a widely read periodical.

B)   Advisors' research department recommends a stock.

C)   For either of the reasons listed here.

答案和详解如下：

Q10. 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)   violated CFA Institute Standards of Professional Conduct because she did not seek approval of the change from her firm's compliance director.

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

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

Correct answer is B)         

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

Q11. Wes Smith, CFA, works for Advisors, Inc. In order to remain in compliance with Standard V(A), Diligence and Reasonable Basis, Smith may recommend a security in which of the following situations?

A)   Smith reads a favorable review of the security in a widely read periodical.

B)   Advisors' research department recommends a stock.

C)   For either of the reasons listed here.

Correct answer is B)         

Smith will be in violation if he acts solely on the basis of what he read in the periodical. Use of information within the firm can be relied upon unless the Smith has reason to believe the source lacks a sound basis.