标题: More ETHICS [打印本页] 作者: dkishore1 时间: 2011-7-11 18:41 标题: More ETHICS
Can someone explain Why i got some of these wrong. Thanks.
1.Lautenschlager has completed her due diligence on a petrochemical company and is preparing to issue a somewhat negative report on the company that will include a “sell” recommendation. She gives a final draft of the report to company management to review for factual accuracy. The CEO of the company is highly upset by the report and threatens to cut-off her access to company officials and bar Lautenschlager from conference calls and other avenues of communication with the company if the report is published. Lautenschlager’s BEST course of action is to:
a.Revise her analysis of the company in light of management’s objections to the report.
b.Publish the report with the analysis intact, but remove the “sell” recommendation.
c. Allow company management to make revisions to de-emphasize the negative factors but maintain the “sell” recommendation in the report.
d. Publish the report as written, regardless of the objections by company management.
I chose A
2.As part of his responsibilities as a research analyst, Gonzalez, along with several other analysts, takes a tour of the corporate headquarters and meets with management of a large electronics company in Asia. The company pays for the travel and accommodations of all the analysts participating in the 2-day tour and hosts a dinner, a golf tournament, and a sightseeing excursion for them as part of the trip. Under these circumstances, Gonzalez:
a.May attend the dinner and participate in the golf-tournament and sight-seeing excursion because Gonzalez considers these modest “perks” acceptable in the normal course of business.
b.May accept the reimbursement for the travel and accommodations because the firm paid for all the analysts and did not show favoritism to Gonzalez.
c.Should not accept reimbursement for his travel and accommodation expenses and should not attend the dinner or participate in the golf tournament as doing so may impinge on Gonzalez’s independence and objectivity.
d.May attend the dinner and participate in the golf tournament and sight-seeing but not accept reimbursement for travel and accommodations.
I chose B
3.Vidovich received a year-end gift of a set of new golf clubs from a client who was delighted by the performance of her portfolio, managed by Vidovich. Vidovich may do all of the following EXCEPT:
a.Accept the gift, keeping the matter confidential.
b. Accept the gift and donate it to charity.
c. Decline the gift.
d. Accept the gift and disclose its receipt to his employer.
I chose D
4.Youn is a successful money manager who is confident of her investment management ability and claims in her marketing brochures that her clients “will obtain a significant return on principle” by following her advice. Youn’s statement:
a.Is not a misrepresentation if all her past clients made money on their investments with her.
b.Improperly implies a guaranteed investment return.
c.States an opinion and therefore cannot be a misrepresentation.
d.Misrepresents her ability as an investment manager.
I chose D
5.Waters is an investment analyst who has accumulated and analyzed several pieces of nonpublic information through her contacts with drug firms. Although none of the information is "material," Waters correctly concludes that the earnings of one of the drug firms will be unexpectedly high in the coming year. Waters:
a. Should urge the drug firm to make public dissemination of the information immediately.
b.Can use the information to make investment recommendations and decisions.
c.May use the information, but only after approval from a compliance officer or supervisory analyst.
d.Cannot legally invest or make investment recommendations based on this information.
I chose A
Thanks for any help!作者: Daniel1985 时间: 2011-7-11 18:41
Yeah but 4 shes also misrepresenting her abilities buy guarenteeing no?作者: Bluetick1010 时间: 2011-7-11 18:41
mosaic theory your right again.....dude i'll be drinking 2 redbulls before the test.作者: Siddimaula 时间: 2011-7-11 18:41
chung, possibly she's misrepresenting, but that's not the best answer. She is implying a guarantee of a positive return.作者: dmar 时间: 2011-7-11 18:41
Chung, it's HUGE to recognize that you can use information if it's MATERIAL and public or NONMATERIAL and nonpublic. So for #5, the fact that the information was nonmaterial enables her to use any of it to make a recommendation.作者: bluejazzy 时间: 2011-7-11 18:41
I think whats considered lavish is the cummulative nature with sight seeing/golf tournament which might affect the independence fo the analyst.作者: ogoluwa 时间: 2011-7-11 18:41
the reimbursement part is okay to understand. So now I need to remember that analysts should not accept anything lavish like Dinner, Golf Tournament etc.
