JPSem

acer Wrote:
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> Got these 3 wrong along with other 2 on ethics
> self test. Please advice.
>
> Gaines, a financial analyst for Skinner Investment
> Counseling, is told by the investor relations
> representative for Firebird Avionics, a major
> aircraft parts manufacturer, that the firm is in
> the final stages of building a new fuel efficient
> jet engine. This information is divulged by
> Firebird at the most recent quarterly conference
> call for analysts. Gaines uses this information
> along with other information he obtained from the
> company and distributed to the public in a

I thought C is wrong because the analyst is from her company, and in that case she has only to verify the research herself as said in the CFAI book
> research report that includes a "buy"
> recommendation for Firebird stock. Which of the
> following statements is CORRECT: Gaines' actions
> did not violate the Code and Standards.
> Gaines violated the Code and Standards because he
> used material nonpublic information.
> Gaines violated the Code and Standards because he
> failed to separate opinion from fact.
> Gaines violated the Code and Standards because he
> has a material misrepresentation in his report.
>
> Marked A
>
> Reese is portfolio manager for several clients.
> She uses the work of the highly skilled research
> analysts in her firm to support her investment
> decisions. Reese: Violated the Code and
> Standards because she was unfamiliar with the
> processes and procedures used by the analysts in
> coming to their conclusions.
> Violated the Code and Standards because she did
> not independently verify the research herself.
> Complied with the Code and Standards.
> Violated the Code and Standards because she did
> not exercise diligence in making her investment
> decisions.
>
> Marked A
>
> Which of the following procedures would help
> maintain the independence and objectivity of
> financial analysts when making investment
> decisions and taking investment actions? All of
> the above.
> Requiring analysts to disclose all personal
> holdings or beneficial ownership of securities.
> Requiring analysts to disclose all relationships
> with companies they cover.
> Prohibiting analysts from accepting valuable
> gifts.
>
> Marked C