Q10. Nicole Wise, CFA, is an analyst at Chicago Securities. She attends a meeting with management of one of the companies that she covers. During the meeting, management expresses great optimism about the company’s recent acquisition of a new business. Wise is excited about these prospects and issues a research report that states that the company is about to achieve significant success with the new acquisition. Wise has:

A)   violated CFA Institute Standards of Professional Conduct because she misrepresented the optimism by turning it to certainty.

B)   violated CFA Institute Standards of Professional Conduct because she did not check the accuracy of the statements that management made.

C)   not violated CFA Institute Standards of Professional Conduct because she had reasonable reason to believe that the statements in her report were true.

Q11. An analyst who routinely purges the files that support his research and recommendations:

A)   is acting in accordance to Standard III(E), Preservation of Confidentiality.

B)   may be violating Standard V(C), Record Retention.

C)   is acting in accordance to Standard IV(A), Loyalty to Employer.

答案和详解如下：

Q10. Nicole Wise, CFA, is an analyst at Chicago Securities. She attends a meeting with management of one of the companies that she covers. During the meeting, management expresses great optimism about the company’s recent acquisition of a new business. Wise is excited about these prospects and issues a research report that states that the company is about to achieve significant success with the new acquisition. Wise has:

A)   violated CFA Institute Standards of Professional Conduct because she misrepresented the optimism by turning it to certainty.

B)   violated CFA Institute Standards of Professional Conduct because she did not check the accuracy of the statements that management made.

C)   not violated CFA Institute Standards of Professional Conduct because she had reasonable reason to believe that the statements in her report were true.

Correct answer is A)

Standard V(B), Communication with Clients and Prospective Clients. Members must distinguish between fact and opinion in the presentation of a research report or investment recommendation. Wise violated the standard because she misrepresented management’s enthusiasm by turning it into certainty.

Q11. An analyst who routinely purges the files that support his research and recommendations:

A)   is acting in accordance to Standard III(E), Preservation of Confidentiality.

B)   may be violating Standard V(C), Record Retention.

C)   is acting in accordance to Standard IV(A), Loyalty to Employer.

Correct answer is B)

According to Standard V(C), a member shall “maintain appropriate records” to support recommendations. Neither of the other choices would apply to this action.

B

B

thanks