2、William Wong, CFA, is an equity analyst with Hayswick Securities. Based on his fundamental analysis, Wong concludes that the stock of a company he follows, Nolvec Inc., is substantially undervalued and will experience a large price increase. He delays revising his recommendation on the stock from "hold" to "buy" to allow his brother to buy shares at a lower price. According to the Standards of Practice Handbook, Wong is least likely to have violated the CFA Institute Standards of Professional Conduct that relate to: A. duty to clients. B. reasonable basis. C. duty to his employer. D. priority of transactions. Correct answer = B
Standards of Practice Handbook, 9th edition (CFA Institute, 2005), pp. 53-55, 83-85, 99-100, 121-122
Standards I-VII
2008 Modular Level I, Vol. 1, pp. 48-50, 69-71, 80-81, 94-95
Study Session 1-2-a
demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations presenting multiple issues of questionable professional conduct
There is nothing to suggest that Wong does not have a reasonable basis for his conclusion related to Nolvec. However, by delaying the revision of his recommendation so that his brother can buy shares at a lower price, he has violated the CFA Institute Standards relating
to duty to client, duty to employer, and priority of transactions. | 
发表于 2008-5-17 18:00
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