2019cfa原版书课后题-reading02-guidance for standards vii

Example4(StatingFactsaboutCFADesignationandRhondaReesehasbeenaCFAcharterholdersince2000.InaconversationwithafriendwhoisconsideringenrollingintheCFAProgram,shestatesthatshehaslearnedagreatdealfromtheCFAProgramandthatmanyfirmsrequiretheiremployeestobeCFAcharterholders.ShewouldmendtheCFAProgramtoanyonepursuingacareerininvestmentComment:Reese’scommentscomplywithStandardVII(B).Herstatementsrefertofacts:TheCFAProgramenhancedherknowledge,andmanyfirmsrequiretheCFAdesignationfortheirinvestmentprofessionals.Example5(OrderofProfessionalandAcademicTatianaPrittimahasearnedbothherCFAdesignationandaPhDinfinance.Shewouldliketocitebothher plishmentsonherbusinesscardbutisunsureofthepropermethodforngso.Comment:Theorderofdesignationscitedonsuchitemsasresumesandbusinesscardsisamatterof alpreference.PrittimaisfreetocitetheCFAdesignationeitherbeforeoraftercitingherPhD.Multipledesignationsmustbeseparatedbyacomma.Example6(UseofFictitiousBarryGlassistheleadtativeystatCityCenterHedgeFund.Glassisresponsibleforthedevelopment,maintenance,andenhancementoftheproprietarymodelsthefundusestomanageitsinvestors’assets.Glassreadsseveralhigh-levelmathematicalpublicationsandblogstostayinformedoncurrentdevelopments.Oneblog,runbyExpertCFA,presentssomeintriguingresearchthatmaybenefitoneofCityCenter’scurrentmodels.Glassisunderpressurefromfirmexecutivestoimprovethemodel’spredictiveabilities,andheincorporatesthefactorsdiscussedintheonlineresearch.Theupdatedoutput mendsseveralnewinvestmentstothefund’sportfoliomanagers.Comment:“ExpertCFA”hasviolatedStandardVII(B)byusingtheCFAdesignationinappropriay.Aswithanyresearchreport,authorshipofonlinecommentsmustincludethecharterholder’sfullnamealongwithanyreferencetotheCFAdesignation.SeealsoStandardV(A),whichGlasshasviolatedforguidanceondiligenceandreasonablebasis.PRACTICE©2014CFAInstitute.AllrightsUnlessotherwisestatedinthequestion,allindividualsinthefollowingquestionsareCFAInstitutemembersorcandidatesintheCFAProgramand,therefore,aresubjecttotheCFAInstituteCodeofEthicsandStandardsofProfessionalConduct.Smith,aresearch ystwithabrokeragefirm,decidestochangehis mendationforthecommonstockofGreenCompany,Inc.,froma“buy”toa“sell.”Hemailsthischangeininvestmentadvicetoallthefirm’sclientsonWednesday.Thedayafterthemailing,aclientcallswithabuyorderfor500sharesofGreenCompany.Inthiscircumstance,Smithshould:AccepttheAdvisethecustomerofthechange mendationbeforeacceptingtheNotaccepttheorderbecauseitiscontrarytothe Whichstatementaboutamanager’suseofclientbrokeragecommissionsviolatestheCodeandStandards?Aclientmaydirectamanagertousethatclient’sbrokeragecommissionstopurchasegoodsandservicesforthatclient.Clientbrokeragecommissionsshouldbeusedtobenefittheclientandshouldbecommensuratewiththevalueofthebrokerageandresearchservicesreceived.Clientbrokeragecommissionsmaybedirectedtopayfortheinvestmentmanager’soperatingexpenses.JamisonisajuniorresearchystwithHoward&Howard,abrokerageandinvestmentbankingfirm.Howard&Howard’smergersandacquisitionsdepartmenthasrepresentedtheBritlandCompanyinallofitsacquisitionsforthepast20years.TwoofHoward&Howard’sseniorofficersaredirectorsofvariousBritlandsubsidiaries.JamisonhasbeenaskedtowritearesearchreportonBritland.Whatisthebestcourseofactionforhertofollow?Jamisonmaywritethereportbutmustrefrainfromexpressinganyopinionsbecauseofthespecialrelationshipsbetweenthetwocompanies.JamisonshouldnotwritethereportbecausethetwoHoward&HowardofficersserveasdirectorsforsubsidiariesofBritland.Jamisonmaywritethereportifshedisclosesthespecialrelationshipswiththecompanyinthereport.Whichofthefollowingstatementsclearlyswiththe mendedproceduresforcompliancepresentedintheCFAInstituteStandardsofPracticeHandbook?Firmsshoulddisclosetoclientsthe alinvestingpoliciesandproceduresestablishedfortheiremployees.Priorapprovalmustbeobtainedforthe alinvestmenttransactionsofallForityreasons, altransactionsandholdingsshouldnotbereportedtoemployersunlessmandatedbyregulatoryorganizations.Bronsonprovidesinvestmentadvicetotheboardoftrusteesofaprivateuniversityendowmentfund.ThetrusteeshaveprovidedBronsonwiththefund’sfinancialinformation,includingplannedexpenditures.BronsonreceivesaphonecallonFridayafternoonfromMurdock,aprominentalumnus,requestingthatBronsonfaxhimcomprehensivefinancialinformationaboutthefund.AccordingtoMurdock,hehasapotentialcontributorbutneedstheinformationthatdaytoclosethedealandcannotcontactanyofthetrustees.BasedontheCFAInstituteStandards,Bronsonshould:SendMurdocktheinformationbecausedisclosurewouldbenefittheNotsendMurdocktheinformationtopreserveSendMurdocktheinformation,providedBronsonpromptlynotifiestheMillerheadstheresearchdepartmentofalargebrokeragefirm.Thefirmhasmanyysts,someofwhomaresubjecttotheCodeandStandards.IfMillerdelegatessomesupervisoryduties,whichstatementbestdescribesherresponsibilitiesundertheCodeandStandards?Miller’ssupervisoryresponsibilitiesdonotapplytothosesubordinateswhoarenotsubjecttotheCodeandStandards.MillernolongerhassupervisoryresponsibilityforthosedutiesdelegatedtoherMillerretainssupervisoryresponsibilityforallsubordinatesdespiteherdelegationofsomeduties.WillieristheresearchystresponsibleforfollowingCompanyX.Alltheinformationhehasaccumulatedandedsuggeststhattheoutlookforthecompany’snewproductsispoor,sothestockshouldberatedaweak“hold.”Duringlunch,however,WillieroverhearsafinancialystfromanotherfirmwhomherespectsofferopinionsthatwithWillier’sforecastsandexpectations.Uponreturningtohisoffice,Willierreleasesastrong mendationtothepublic.ViolatedtheStandardsbyfailingtodistinguishbetweenfactsandopinionsinhisViolatedtheStandardsbecausehedidnothaveareasonableandadequatebasisforhisWasinfullcompliancewiththeAninvestmentmanagementfirmhasbeenhiredbyETVCorporationtoworkonanadditionalpublicofferingforthecompany.Thefirm’sbrokerageunitnowhasa“sell”mendationonETV,buttheheadoftheinvestmentbankingdepartmenthasaskedtheheadofthebrokerageunittochangethe mendationfrom“sell”to“buy.”AccordingtotheStandards,theheadofthebrokerageunitwouldbepermittedto:Increasethe mendationbynomorethanoneincrement(inthiscase,toa“hold”PlacethecompanyonarestrictedlistandgiveonlyfactualinformationabouttheAssigna ysttodecideifthestockdeservesahigherAlbertandTye,whorecentlystartedtheirowninvestmentadvisorybusiness,haveregisteredtotaketheLevelIIICFAexamination.Albert’sbusinesscardreads,“JudyAlbert,CFALevelII.”TyehasnotputanythingabouttheCFAdesignationonhisbusinesscard,butpromotionalmaterialthathedesignedforthebusinessdescribestheCFArequirementsandindicatesthatTyeparticipatesintheCFAProgramandhascompletedLevelsIandII.AccordingtotheStandards:AlberthasviolatedtheStandards,butTyehasTyehasviolatedtheStandards,butAlberthasBothAlbertandTyehaveviolatedtheScottworksforaregionalbrokeragefirm.HeestimatesthatWalktonIndustrieswillincreaseitsdividendbyUS$1.50ashareduringthenextyear.Herealizesthatthisincreaseiscontingentonpendinglegislationthatwould,ifenacted,giveWalktonasubstantialtaxbreak.TheUSrepresentativeforWalkton’shomedistricthastoldScottthat,althoughsheislobbyinghardforthebillandprospectsforitspassagearefavorable,concernoftheUSCongressoverthefederaldeficitcouldcausethetaxbilltobevoteddown.WalktonIndustrieshasnotmadeanystatementsaboutachangeindividendpolicy.Scottwritesinhisresearchreport,“WeexpectWalkton’sstockpricetorisebyatleastUS$8.00asharebytheendoftheyearbecausethedividendwillincreasebyUS$1.50ashare.Investorsbuyingthestockatthecurrenttimeshouldexpecttorealizeatotalreturnofatleast15%onthestock.”AccordingtotheStandards:ScottviolatedtheStandardsbecauseheusedmaterialinsideScottviolatedtheStandardsbecausehefailedtoseparateopinionfromScottviolatedtheStandardsbybasinghisresearchonuncertainpredictionsoffutureernmentaction.Whichoneofthefollowingactionswillhelptoensurethefairtreatmentofbrokeragefirmclientswhenanewinvestment mendationismade?Informingallpeopleinthefirminadvancethata mendationistobe mendationstoinstitutionalclientspriortoindividualMinimizingthetimebetweenthedecisionandthedisseminationof ThemosaictheoryholdsthatanViolatestheCodeandStandardsifthe ystfailstohaveknowledgeofandcomplywithapplicablelaws.Canusematerialpublicinformationandnonmaterialnonpublicinformationinthe ShoulduseallavailableandrelevantinformationinsupportofaninvestmentJurgenisaportfoliomanager.Oneofherfirm’sclientshastoldJurgenthathewillcompensateherbeyondthecompensationprovidedbyherfirmonthebasisofthecapitalappreciationofhisportfolioeachyear.Jurgenshould:Turndowntheadditionalcompensationbecauseitwillresultinswiththeinterestsofotherclients’accounts.Turndowntheadditionalcompensationbecauseitwillcreateunduepressureonhertoachievestrongshort-termperformance.ObtainpermissionfromheremployerpriortoacceptingthecompensationOneofthediscretionaryaccountsmanagedbyFarnsworthistheJonesCorporationemployeeprofit-sharingplan.Jones,thecompany,recentlyaskedFarnsworthtovotethesharesintheprofit-sharingplaninfavoroftheslateofdirectorsnominatedbyJonesCorporationandagainstthedirectorssponsoredbyastockholdergroup.Farnsworthdoesnotwanttolosethisaccountbecausehedirectsalltheaccount’stradestoabrokeragefirmthatprovidesFarnsworthwithusefulinformationabouttax-freeinvestments.AlthoughthisinformationisnotofvalueinmanagingtheJonesCorporationaccount,itdoeshelpinmanagingseveralotheraccounts.Thebrokeragefirmprovidingthisinformationalsooffersthelowestcommissionsfortradesandprovidesbestexecution.Farnsworthinvestigatesthedirectorissue,concludesthatthemanagement-nominatedslateisbetterforthelong-runperformanceofthecompanythanthegroup’sslate,andvotesaccordingly.ViolatedtheStandardsinvotingthesharesinthemannerrequestedbyJonesbutnotindirectingtradestothebrokeragefirm.DidnotviolatetheStandardsinvotingthesharesinthemannerrequestedbyJonesorindirectingtradestothebrokeragefirm.ViolatedtheStandardsindirectingtradestothebrokeragefirmbutnotinvotingthesharesasrequestedbyJones.Brownworksforaninvestmentcounselingfirm.Green,anewclientofthefirm,ismeetingwithBrownforthefirsttime.Greenusedanothercounselingfirmforfinancialadviceforyears,butshehasswitchedheraccounttoBrown’sfirm.Afterspendingafewminutesgettingacquainted,BrownexplainstoGreenthatshehasdiscoveredahighlyundervaluedstockthatofferslargepotentialgains.She mendsthatGreenpurchasethestock.BrownhascommittedaviolationoftheStandards.Whatshouldshehavedonedifferently?BrownshouldhavedeterminedGreen’sneeds,objectives,andtoleranceforriskbeforemakinga mendationofanytypeofsecurity.BrownshouldhavethoroughlyexplainedthecharacteristicsofthecompanytoGreen,includingthecharacteristicsoftheindustryinwhichthecompanyoperates.Brownshouldhaveexplainedherqualifications,includinghereducation,training,andexperienceandthemeaningoftheCFAdesignation. mendsthepurchaseofamutualfundthatinvestssolelyinlong-termUSTreasurybonds.Hemakesthefollowingstatementstohisclients:“ThepaymentofthebondsisguaranteedbytheUS ernment;therefore,thedefaultriskofthebondsisvirtuallyzero.”“Ifyouinvestinthemutualfund,youwillearna10%rateofreturneachyearforthenextseveralyearsbasedonhistoricalperformanceofthemarket.”DidGrey’sstatementsviolatetheCFAInstituteCodeandNeitherstatementviolatedtheCodeandOnlystatementIviolatedtheCodeandOnlystatementIIviolatedtheCodeandAnderb,aportfoliomanagerforXYZInvestmentManagementCompany—aregisteredinvestmentorganizationthatadvisesinvestmentfirmsandprivateaccounts—waspromotedtothatpositionthreeyearsago.Bates,hersupervisor,isresponsibleforreviewingAnderb’sportfolioaccounttransactionsandherrequiredmonthlyreportsof alstocktransactions.AnderbhasbeenusingJonelli,abroker,almostexclusivelyforbrokeragetransactionsfortheportfolioaccount.ForsecuritiesinwhichJonelli’sfirmmakesamarket,JonellihasbeengivingAnderblowerprices alpurchasesandhigherpricesalsalesthanJonelligivestoAnderb’sportfolioaccountsandotherinvestors.AnderbhasbeenfilingmonthlyreportswithBatesonlyforthosemonthsinwhichshehasnoaltransactions,whichisabouteveryfourthmonth.WhichofthefollowingismostlikelytobeaviolationoftheCodeandStandards?Anderbfailedtodisclosetoheremployer alAnderbownedthesamesecuritiesasthoseofherBatesallowedAnderbtouseJonelliasherbroker alWhichofthefollowingisacorrectstatementofamember’sorcandidate’sdutyundertheCodeandStandards?Intheabsenceofspecificapplicablelaworotherregulatoryrequirements,theCodeandStandards ernthemember’sorcandidate’sactions.Amemberorcandidateisrequiredtocomplyonlywithapplicablelocallaws,rules,regulations,orcustoms,eventhoughtheCodeandStandardsmayimposeahigherdegreeofresponsibilityorahigherdutyonthememberorcandidate.Amemberorcandidatewhotradessecuritiesinasecuritiesmarketwherenoapplicablelocallawsorstockexchangerulesregulatetheuseofmaterialnonpublicinformationmaytakeinvestmentactionbasedonmaterialnonpublicinformation.WardisscheduledtovisitthecorporateheadquartersofEvansIndustries.WardexpectstousetheinformationheobtainstheretocompletehisresearchreportonEvansstock.WardlearnsthatEvansplanstopayallofWard’sexpensesforthetrip,includingcostsofmeals,horoom,andairtransportation.WhichofthefollowingactionswouldbethebestcourseforWardtotakeundertheCodeandStandards?Accepttheexpense-paidtripandwriteanobjectivePayforalltravelexpenses,includingcostsofmealsandincidentalAccepttheexpense-paidtripbutdisclosethevalueoftheservicesacceptedintheWhichofthefollowingstatementsiscorrectundertheCodeandCFAInstitutemembersandcandidatesareprohibitedfromundertakingindependentpracticeincompetitionwiththeiremployer.Writtenconsentfromtheemployerisnecessarytopermitindependentpracticethatcouldresultincompensationorotherbenefitsincompetitionwithamember’sorcandidate’semployer.MembersandcandidatesareprohibitedfrommakingarrangementsorpreparationstogointoacompetitivebusinessbeforeterminatingtheirrelationshipwiththeirSmithisafinancialystwithXYZBrokerageFirm.SheispreparingapurchasemendationonJNICorporation.WhichofthefollowingsituationsismostlikelytorepresentaofinterestforSmiththatwouldhavetobeSmithfrequentlypurchasesitemsproducedbyXYZholdsforitsownaccountasubstantialcommonstockpositioninSmith’sbrother-in-lawisartoMichelieulsaprospectiveclient,“Imaynothavealong-termtrackrecordyet,butI’msurethatyou’llbeverypleasedwithmy mendationsandservice.InthethreeyearsthatI’vebeeninthebusiness,myequity-orientedclientshaveaveragedatotalreturnofmorethan26%ayear.”Thestatementistrue,butMichelieuonlyhasafewclients,andoneofhisclientstookalargepositioninapennystock(againstMichelieu’sadvice)andrealizedahugegain.ThislargereturncausedtheaverageofallofMichelieu’sclientstoexceed26%ayear.Withoutthisoneinvestment,theaveragegainwouldhavebeen8%ayear.HasMichelieuviolatedtheStandards?No,becauseMichelieuisnotpromisingthathecanearna26%returnintheNo,becausethestatementisatrueandaccuratedescriptionofMichelieu’strackYes,becausethestatementmisrepresentsMichelieu’strackAninvestmentbankingdepartmentofabrokeragefirmoftenreceivesmaterialnonpublicinformationthatcouldhaveconsiderablevalueifusedinadvisingthefirm’sbrokerageclients.InordertoconformtotheCodeandStandards,whichoneofthefollowingisthebestpolicyforthebrokeragefirm?Permanentlyprohibitboth“buy”and“sell” mendationsofthestocksofclientsoftheinvestmentbankingdepartment.Establishphysicalandinformationalbarrierswithinthefirmtopreventtheexchangeofinformationbetweentheinvestmentbankingandbrokerageoperations.Monitortheexchangeofinformationbetweentheinvestmentbankingdepartmentandthebrokerageoperation.StewarthasbeenhiredbyGoodnerIndustries,Inc.,tomanageitspensionfund.Stewart’sdutyofloyalty,prudence,andcareisowedto:ThemanagementofTheparticipantsandbeneficiariesofGoodner’spensionTheshareholdersofWhichofthefollowingstatementsisastatedpurposeofdisclosureinStandardVI(C)–ReferralFees?DisclosurewillallowtheclienttorequestdiscountedserviceDisclosurewillhelptheclientevaluateanypossiblepartialityshowninthemendationofservices.Disclosuremeansadvisingaprospectiveclientaboutthereferralarrangementonceaformalclientrelationshiphasbeenestablished.Rose,aportfoliomanagerforalocalinvestmentadvisoryfirm,isplanningtosellaportionof alinvestmentportfoliotocoverthecostsofhischild’sacademictuition.RosewantstosellaportionofhisholdingsinHouseholdProducts,buthisfirmrecentlyupgradedthestockto“strongbuy.”WhichofthefollowingdescribesRose’soptionsundertheCodeandStandards?Basedonhisfirm’s“buy” mendation,Rosecannotsellthesharesbecausehewouldbeimproperlyprosperingfromtheinflated Roseisfreetosellhis alholdingsoncehisfirmisproperlyinformedofhisRosecansellhis alholdingsbutonlywhenaclientofthefirmplacesanordertobuysharesofHousehold.Aformerhedgefundmanager,Jackman,hasdecidedtolaunchanewprivatewealthmanagementfirm.Fromhispriorexperiences,hebelievesthenewfirmneedstoachieveUS$1millioninassetsundermanagementinthefirstyear.Jackmanoffersa$10,000incentivetoanyadviserwhojoinshisfirmwiththeminimumof$200,000incommittedinvestments.Jackmanplacesnoticeoftheopeningonseveralindustrywebportalsandcareersearchsites.WhichofthefollowingiscorrectaccordingtotheCodeandStandards?Amemberorcandidateiseligibleforthenewpositionandincentiveifheorshecanarrangeforenoughcurrentclientstoswitchtothenewfirmandifthememberorcandidatedisclosestheincentivefee.AmemberorcandidatemaynotacceptemploymentwiththenewfirmbecauseJackman’sincentiveofferviolatestheCodeandStandards.Amemberorcandidateisnoteligibleforthenewpositionunlessheorsheiscurrentlyunemployedbecausesolicitingtheclientsofthemember’sorcandidate’scurrentemployerisprohibited.CarterworksforInvestToday,alocalassetmanagementfirm.AbrokerthatprovidesCarterwithproprietaryresearchthroughclientbrokeragearrangementsisofferinganewtradingservice.Thebrokerisofferinglow-fee,execution-onlytradestocomplementitstraditionalfull-service,execution-and-researchtrades.ToenticeCarterandotherassetmanagerstosendadditionalbusinessitsway,thebrokerwillapplythecommissionspaidonthenewservicetowardsatisfyingthebrokeragecommitmentofthepriorfull-servicearrangements.Carterhasalwaysbeensatisfiedwiththeexecutionprovidedonthefull-servicetrades,andthenewlow-feetradesarecomparabletothefeesofotherbrokerscurrentlyusedfortheaccountsthatprohibitsoftdollararrangements.Cartercantradeforhisaccountsthatprohibitsoftdollararrangementsunderthenewlow-feetradingscheme.Cartercannotusethenewtradingschemebecausethecommissionsareprohibitedbythesoftdollarrestrictionsoftheaccounts.Cartershouldtradeonlythroughthenewlow-feeschemeandshouldincreasehistradingvolumetomeethisrequiredcommissioncommitment.Rulehasworkedasaportfoliomanagerforalargeinvestmentmanagementfirmforthepast10years.RuleearnedhisCFAcharterlastyearandhasdecidedtoopenhisowninvestmentmanagementfirm.Afterleavinghiscurrentemployer,Rulecreatessomemarketingmaterialforhisnewfirm.Hestatesinthematerial,“InearningtheCFAcharter,ahighlyregardedcredentialintheinvestmentmanagementindustry,Ifurtherenhancedtheportfoliomanagementskillslearnedduringmyprofessionalcareer.Whilecompletingtheexaminationprocessinthreeconsecutiveyears,IconsistentlyreceivedthehighestpossiblescoresonthetopicsofEthics,AlternativeInvestments,andPortfolioManagement.”HasRuleviolatedStandardVII(B)–ReferencetoCFAInstitute,theCFADesignation,andtheCFAPrograminhismarketingmaterial?RuleviolatedStandardVII(B)instatingthathecompletedtheexamsinthreeconsecutiveyears.RuleviolatedStandardVII(B)instatingthathereceivedthehighestscoresinthetopicsofEthics,AlternativeInvestments,andPortfolioManagement.RuledidnotviolateStandardStaffordisaportfoliomanagerforaspecializedrealestatemutualfund.Herfirmclearlydescribesinthefund’sprospectusitssoftdollarpolicies.StafforddecidesthatenteringtheCFAProgramwillenhanceherinvestmentdecision-makingskillanddecidestousethefund’ssoftdollaraccounttopaytheregistrationandexamfeesfortheCFAProgram.Whichofthefollowingstatementsismostlikelycorrect?StafforddidnotviolatetheCodeandStandardsbecausetheprospectusinformedinvestorsofthefund’ssoftdollarpolicies.StaffordviolatedtheCodeandStandardsbecauseimprovingherinvestmentskillsisnotareasonableuseofthesoftdollaraccount.StaffordviolatedtheCodeandStandardsbecausetheCFAProgramdoesnotmeetthedefinitionofresearchallowedtobepurchasedwithbrokeragecommissions.Longhasbeenaskedtobethekeynotespeakeratan inginvestmentconference.Theeventisbeinghostedbyoneofthethird-partyinvestmentmanagerscurrentlyusedbyhispensionfund.ThemanagerofferstocoverallconferenceandtravelcostsforLongandmaketheconferenceregistrationsfreeforthreeadditionalmembersofhisinvestmentmanagementteam.Toensurethattheconferenceobtainsthebestspeakers,thehostfirmhasarrangedforanexclusivegolfoutingforthedayfollowingtheconferenceonalocalchampionship-calibercourse.WhichofthefollowingisleastlikelytoviolateStandardI(B)?Longmayacceptonlytheoffertohavehisconference-relatedexpensespaidbythehostfirm.Longmayaccepttheoffertohavehisconference-relatedexpensespaidandmayattendtheexclusivegolfoutingattheexpenseofthehostingfirm.LongmayaccepttheentirepackageofincentivesofferedtospeakatthisAndrews,aprivatewealthmanager,isconductinginterviewsforanewresearch ystforhisfirm.OneofthecandidatesisWright,an ystwithalocalinvestmentbank.Duringtheinterview,whileWrightisdescribinghis yticalskills,hementionsacurrentmergerinwhichhisfirmisactingastheadviser.Andrewshasheardrumorsofapossiblemergerbetweenthetwocompanies,butnoreleaseshavebeenmadebythecompaniesconcerned.WhichofthefollowingactionsbyAndrewsisleastlikelyaviolationoftheCodeandWaitinguntilthenextdaybeforetradingontheinformationtoallowtimeforittoepublic.Notifyingallinvestmentmanagersinhisfirmofthenewinformationsononeoftheirclientsaredisadvantaged.Placingthesecuritiesmentionedaspartofthemergeronthefirm’srestrictedtradingPietro,ofLocalBank,hashiredthebank’smarketmaker,Vogt,toseekamergerpartner.Localiscurrentlynotlistedonastockexchangeandhasnotreportedthatitisseekingstrategicalternatives.Vogthasdiscussedthepossibilityofamergerwithseveralfirms,buttheyhavealldecidedtowaituntilafterthenextperiod’sfinancialdataareavailable.ThepotentialbuyersbelievetheresultswillbeworsethantheresultsofpriorperiodsandwillallowthemtopaylessforLocalBank.Pietrowantstoincreasethelikelihoodofstructuringamergerdealquickly.WhichofthefollowingactionswouldmostlikelybeaviolationoftheCodeandStandards?PietrocouldinstructLocalBanktoissueapressreleaseannouncingthatithasretainedVogttofindamergerpartner.Pietrocouldplaceabuyorderfor2,000shares(orfourtimestheaverageweeklyvolume)throughVogtforhis alaccount.AfterconfirmingwithLocal’schieffinancialofficer,PietrocouldinstructLocaltoissueapressreleasereaffirmingthefirm’spriorannouncedearningsguidanceforthefullfiscalyear.ABCInvestmentManagementacquiresanew,verylargeaccountwithtwoconcentratedpositions.Thefirm’scurrentpolicyistoaddnewaccountsforthepurposeofperformancecalculationafterthefirstfullmonthofmanagement.Cuppisresponsibleforcalculatingthefirm’sperformancereturns.Beforetheendoftheinitialmonth,Cuppnoticesthatoneofthesignificantholdingsofthenewaccountsisacquiredbyanothercompany,causingthevalueoftheinvestmenttodouble.Becauseofthisholding,Cuppdecidestoaccountforthenewportfolioasofthedateoftransfer,therebyallowingABCInvestmenttoreapthepositiveimpactofthatmonth’sportfolioCuppdidnotviolatetheCodeandStandardsbecausetheGIPSstandardsallowcompositestobeupdatedonthedateoflargeexternalcashflows.CuppdidnotviolatetheCodeandStandardsbecausecompaniesareallowedtodeterminewhentoincorporatenewaccountsintotheircompositecalculation.CFA全新考季资料免费获取（含CFA网课 考纲编写，比看notes还有效率/2018-2019年

器讲解 群 即可 CFA网课简 CFA一级百日通关攻略课 CFA二级百日通关攻略课 对性得梳理备考知识概念，攻克考生薄弱知识环节，系统掌握考试重难点，不断突破自己。节省下70%的人力、物力、财力，摆脱复习时间紧张的危弃冗杂低效资料，带你轻松PASSCFA 从命题者角度出发纵观考试和学习，倾力打造的，直击考试“”！配套通关百题使用，以题带点，深度剖析重难考题，带你掌握CFA全书内容！CFA通关百题6.0+精讲课，集学、练、测、查于一体，帮生在冲刺阶段有限的时间内，更有针对性的高效复习，通过预测实战训练，精准CuppviolatedtheCodeandStandardsbecausetheinclusionofthenewaccountproducesaninaccuratecalculationofthemonthlyresultsaccordingtothefirm’sstatedCannanhasbeenworkingfromhomeonweekendsandoccasionallysavescorrespondencewithclientsandcompletedworkonherhomecomputer.Becauseofworseningmarketconditions,Cannanisoneofseveralemployeesreleasedbyherfirm.WhileCannanislookingforanewjob,sheusesthefilesshesavedathometorequestlettersofmendationfromformerclients.Shealsoprovidestoprospectiveclientssomeofthereportsasexamplesofherabilities.CannanviolatedtheCodeandStandardsbecauseshedidnotreceivepermissionfromherformeremployertokeeporusethefilesafterheremploymentended.CannandidnotviolatetheCodeandStandardsbecausethefileswerecreatedandsavedonherowntimeandcomputer.CannanviolatedtheCodeandStandardsbecausesheisprohibitedfromsavingfilesonherhomecomputer.QuinnsatfortheLevelIIICFAexamthispastweekend.Heupdateshisresumewiththefollowingstatement:“InfinishingtheCFAProgram,Iimprovedmyskillsrelatedtoresearchinginvestmentsandmanagingportfolios.IwillbeeligiblefortheCFAcharteruponcompletionoftherequiredworkexperience.”QuinnviolatedtheCodeandStandardsbyclaimingheimprovedhisskillsthroughtheCFAProgram.QuinnviolatedtheCodeandStandardsbyincorrectlystatingthatheiseligiblefortheCFAcha