Ethics Q automotive, investment, particular, producing, published

richer

Choi is a part of a research team that is collectively responsible for producing investment analysis for his firm’s portfolio managers. The research reports of the group contain all the names of the analysts on the research team. Generally, Choi agrees with the conclusions and recommendations contained in the reports published by the group, but occasionally he holds a minority view. In the report on a particular automotive company, Choi believes prospects for the company are dim while the remainder of the research group are optimistic about the company’s future. The final report recommends that investors buy stock in the company.
Choi should:

a.Inform his supervisors that, unless he dissociates from the report, he will be in violation of the Code and Standards.
b.Insist that his name be removed from the report.
c.Cooperate with publishing the report but document his difference of opinion with the research team.
d.Write his own report and publish it separately.


I said B



Edited 1 time(s). Last edit at Wednesday, June 3, 2009 at 02:51PM by chung.da.neu.

amqata

C is the right answer

Finalnub

C is the correct answer, but Harley228 brings the point that makes the most sense. There is a number of loosely based justifications for this, but it doesn't change the fact that a team recommendation breads healthy conflict. As long as there is no material errors, misrepresentation and so forth, there isn't really an issue according to the standards.

thisisbrianly

It is c.

With group produced analysis, you don't have to agree with everyone else in the group. Your choices are to either document your difference of opinion or remove your name from the report, which is a more extreme thing to do.

I think.