Q9. Arthur Harrow, CFA, is a pharmaceuticals analyst at Dominion Asset Management. His supervisor directs him to prepare separate research reports on Miracle Drug Company and Wonder Drug Company. Harrow's former college roommate and close friend is the president of Miracle. Harrow owns 2000 shares of Wonder, which currently sells for $25 a share. Harrow's supervisor is unaware of these facts. According to CFA Institute Standards of Professional Conduct, which of the following action, if any, is Harrow required to take if he writes the research reports?

A)   Harrow must disclose to Dominion both his relationship with the president of Miracle and his ownership of shares in Wonder.

B)   Harrow must disclose to Dominion his ownership of shares in Wonder but not his relationship with the president of Miracle.

C)   Harrow must disclose to Dominion his relationship with the president of Miracle but not his ownership of shares in Wonder.

Q10. When an analyst makes an investment recommendation, which of the following statements must be disclosed to clients?

A)   An employee of the firm holds a directorship with the recommended company.

B)   Both of these statements must be disclosed to clients.

C)   The firm is a market maker in the stock of the recommended company.

答案和详解如下：

Q9. Arthur Harrow, CFA, is a pharmaceuticals analyst at Dominion Asset Management. His supervisor directs him to prepare separate research reports on Miracle Drug Company and Wonder Drug Company. Harrow's former college roommate and close friend is the president of Miracle. Harrow owns 2000 shares of Wonder, which currently sells for $25 a share. Harrow's supervisor is unaware of these facts. According to CFA Institute Standards of Professional Conduct, which of the following action, if any, is Harrow required to take if he writes the research reports?

A)   Harrow must disclose to Dominion both his relationship with the president of Miracle and his ownership of shares in Wonder.

B)   Harrow must disclose to Dominion his ownership of shares in Wonder but not his relationship with the president of Miracle.

C)   Harrow must disclose to Dominion his relationship with the president of Miracle but not his ownership of shares in Wonder.

Correct answer is A)

Standard VI(A) requires that Harrow disclose to Dominion conflicts that reasonably could be expected to interfere with his independence and objectivity. Both Harrow's relationship with the president of Miracle and his ownership of a substantial dollar amount of Wonder's shares represent a potential conflict requiring prompt disclosure to Dominion.

Q10. When an analyst makes an investment recommendation, which of the following statements must be disclosed to clients?

A)   An employee of the firm holds a directorship with the recommended company.

B)   Both of these statements must be disclosed to clients.

C)   The firm is a market maker in the stock of the recommended company.

Correct answer is B)

Both of these items are explicitly listed in the discussion of Standard VI(A), Disclosure of Conflicts.

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