1215

A copyrighted technique for measuring the downside risk of an investment has just been revealed to the public. If an analyst adopts the technique, he must cite the use of the technique in all research reports in which the technique is used EXCEPT:

A) if the analyst does not modify the technique at all.

B) Neither of these answers provide grounds for an exception.

C) if the analyst uses reasonable care and verifies that the technique provides superior results.

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Neither of the answers in this question provide adequate grounds for not citing the source of the methodology. Although “verifying” the technique is a good idea and congruent with the Code and Standards, the analyst still needs to cite the use of the copyrighted technique even after modifying it slightly to avoid violation of Standard I(C), Misrepresentation.

1215

According to CFA Institute Standards of Professional Conduct, which of the following is NOT a form of plagiarism?

A) Citing specific quotations supposedly attributable to "leading analysts" and "investment experts" without specific reference.

B) Presenting statistical estimates of forecasts prepared by others with the source identified, but without qualifying statements or caveats that may have been used.

C) Using factual information published by recognized financial and statistical reporting services or similar sources without an acknowledgment.

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Standard I(C) provides that "factual information published by recognized financial and statistical reporting services or similar sources" may be used without an acknowledgment.

1215

Ellen Miamoto, CFA, is preparing a research report on an employment agency, Temp Help, Inc. She includes in her report:

• A copy of a paragraph from a report by the Wall Street research firm of Benson Smith.
• A graph Miamoto has modified based on an original graph prepared by Gordon Thompson that was published in the Wall Street Journal.
• A chart of national employment trends that Miamoto created using data from the U.S. government's Bureau of Labor Statistics.

In her report, Miamoto must identify and acknowledge:

A) Benson Smith, Gordon Thompson, and the Bureau of Labor Statistics.

B) Benson Smith only.

C) Benson Smith and Gordon Thompson.

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Standard I(C) Misrepresentation requires members to acknowledge and identify the author, publisher, or source of material they use in substantially the same form as the original. The use of Benson Smith’s original material and Gordon Thompson’s modified material must be acknowledged. The exception to this requirement is information from recognized financial and statistical reporting services, such as the government agencies that compile national economic statistics.

1215

A CFA charterholder gathers the closing prices of a security from a widely read publication. The charterholder uses the data as part of a report she is preparing and fails to report the data source in the report. This is:

A) a violation of Standard I(C).

B) not a violation of Standard I(C) if the data cannot be gathered from several public sources.

C) not a violation of Standard I(C) if the data can be gathered from several public sources.

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Since the security prices represent factual information that can be verified from several sources, there is no violation. It could have been a violation had the information been exclusively published by the source.