which standard was not broken --Schweser qbank question into, understand, Investment, standards

invic

Don’t understand the explanation. I think Trader violated loyalty to her clients, while Cuff violated standards for supervisors. So the correct answer should be B. Any thoughts?
Patricia Cuff is the chief financial officer and compliance officer at Super Selection Investment Advisors that has incorporated the CFA Institute Code of Standards into the firm’s compliance manual. Karen Trader is a portfolio manager for Super Selection. Trader is friendly with Josey James, president of AMD, a rapidly growing biotech company. Trader has served on AMD’s board of directors for the last three years. James has asked Trader to commit to a large purchase of AMD stock for her portfolios. Trader had previously determined that AMD was a questionable investment but agreed to reconsider. Her reevaluation deemed the stock to be overpriced, but she nevertheless decides to purchase for her portfolios. Which standard was NOT broken?
A) IV(A)—Loyalty.
B) I(C)—Misrepresentation.
C) IV(C)—Responsibilities of Supervisors.
The correct answer is A.
IV(A) Loyalty was not broken because this standard involves going into a business that competes with your employer. IV(C) Responsibilities of Supervisors was breached because Trader broke several CFA Institute Standards which Cuff should have enforced. I(C) Misrepresentation was broken because Trader purchased stock for her clients even though she thought AMD was a questionable investment.