2025年CFA三级案例分析真题

2025年CFA三级案例分析真题考试时间：______分钟总分：______分姓名：______CaseStudy1:InvestmentPortfolioManagementforaHigh-Net-WorthClientYouareaportfoliomanagerataleadinginvestmentfirm.Youaremeetingwithanewclient,Mr.Smith,whohasrecentlyinheritedasignificantamountofwealthandisseekingyouradviceoninvestinghisportfolio.Mr.Smithis55yearsold,marriedwithtwochildren,andexpectstoretireatage65.Hehasamoderaterisktolerancebutisconcernedaboutoutpacinginflationandensuringasafewithdrawalrateinretirement.Hiscurrentportfolioconsistsprimarilyofstocksfromhishomecountry,withatotalvalueof$5million.Duringyourmeeting,yougatherthefollowinginformation:*Mr.Smith'semergencyfundcovers6monthsoflivingexpensesandisinvestedinahigh-yieldsavingsaccount.*Hehasamortgageonhisprimaryresidencewitharemainingbalanceof$1.5million.*Heanticipatesneeding$3millionintoday'sdollarsforhischildren'seducation,whichheplanstosaveoverthenext10years.*Hewantstoensurethathisportfoliogeneratessufficientincometocoverhisexpectedretirementexpenses,whichheestimateswillbe$200,000peryearintoday'sdollars,startingatage65.*Heisinterestedindiversifyinghisportfoliobyaddinginternationalassets,realestate,andpotentiallyprivateequity.BasedonMr.Smith'ssituationandobjectives,addressthefollowing:1.Outlinethekeystepsyouwouldtaketodevelopaninvestmentpolicystatement(IPS)forMr.Smith.DiscusstheimportantcomponentsthatshouldbeincludedintheIPS.2.DescribethefactorsyouwouldconsiderwhendeterminingtheappropriateassetallocationforMr.Smith'sportfolio.Providearationaleforyourrecommendedallocation.3.Explainhowyouwouldincorporateinternationalassets,realestate,andpotentiallyprivateequityintoMr.Smith'sportfolio.Discussthebenefitsandrisksofeachassetclassinthecontextofhisinvestmentobjectives.4.Mr.Smithexpressedconcernaboutthepotentialimpactofinflationonhisretirementsavings.Describethestrategiesyouwouldemploytohelpprotecthisportfolioagainstinflationrisk.5.DiscusstheimportanceofregularportfoliomonitoringandrebalancingforMr.Smith.Explainhowyouwouldapproachthemonitoringandrebalancingprocessandthefrequencywithwhichyouwouldperformthesetasks.CaseStudy2:FinancialStatementAnalysisandValuationofaTechnologyCompanyYouareananalystataresearchfirm,andyouareevaluatingapubliclytradedtechnologycompany,TechCorp.YouhavebeenassignedthetaskofanalyzingTechCorp'sfinancialstatementsandvaluingthecompany.Yougatherthefollowinginformation:*TechCorp'sincomestatementforthepastthreeyearsshowsrevenuegrowthof20%annually,withnetincomegrowthof15%annually.*Thecompany'sbalancesheetshowsastrongcashposition,withtotaldebttoequityratioof0.5.*TechCorp'scurrentstockpriceis$150pershare,andithas1millionsharesoutstanding.*YoucollectindustrydataandfindthattheaverageP/Eratioforcomparablecompaniesis25,andtheaveragePEGratiois1.5.*YoualsogatherinformationonTechCorp'scapitalexpenditures,whichareexpectedtogrowatarateof10%peryear,anditsworkingcapitalrequirements,whichareexpectedtoremainstable.Basedontheinformationprovided,addressthefollowing:1.CalculateandinterpretkeyfinancialratiosforTechCorp,includingprofitabilityratios,liquidityratios,andsolvencyratios.Discussthetrendsintheseratiosoverthepastthreeyearsandwhattheyindicateaboutthecompany'sfinancialperformance.2.Usingtheprovidedindustrydataandyourownanalysis,estimatetheintrinsicvalueofTechCorp'sstockusingatleasttwodifferentvaluationmethods.Discusstheassumptionsandlimitationsofeachmethod.3.DiscussthepotentialrisksassociatedwithinvestinginTechCorp'sstock.Considerfactorssuchasindustrycompetition,regulatoryenvironment,andtechnologicaldisruptions.4.Assumingyouareconsideringrecommendinga"buy"ratingonTechCorp'sstock,whatfactorswouldyouemphasizeinyourinvestmentrecommendationreport?Howwouldyouaddresstheconcernsofpotentialinvestorsregardingtherisksassociatedwiththecompany?5.TechCorpisconsideringundertakingasharebuybackprogram.Discussthepotentialbenefitsanddrawbacksofasharebuybackforthecompanyanditsshareholders.Considerfactorssuchasthecompany'scashposition,growthprospects,andmarketperception.CaseStudy3:EthicsandProfessionalStandardsinInvestmentAdviceYouareaportfoliomanageratadifferentinvestmentfirm.Youaremanagingaportfolioforaclient,Ms.Johnson,whoisaclosefriendofyours.Ms.Johnsonhasbeenaclientofyourfirmforseveralyearsandhasentrustedyouwithmanagingasignificantportionofherwealth.Recently,Ms.Johnsoninformsyouthatshehasbeenofferedajobasafinancialadvisoratacompetingfirm.Duringyourconversation,Ms.Johnsonrevealsthatthecompetingfirmhasofferedheralucrativepositionwithahighersalaryandbonuspotential.Shealsomentionsthatthefirmiswillingtopayherasignificantamountofmoneytotransferhercurrentportfolioof$2milliontotheirfirm.Sheasksforyouradviceonwhethertoacceptthejobofferandhowtohandlethepotentialconflictofinterestthatmayarisefromherswitchingfirmswhilestillhavingaportfoliomanagedbyyou.Addressthefollowing:1.DescribetheethicaldilemmafacedbyMs.Johnsonandthepotentialconflictsofinterestinvolvedinthissituation.2.ExplainhowyouwouldapplytheCFAInstituteCodeandStandardsofProfessionalConducttothissituation.Discussspecificstandardsthatarerelevanttothescenario,suchasStandardI(A)(DutytoActforClient'sBenefit),StandardII(A)(DutytoExerciseDueCareandDiligence),andStandardVI(A)(DutytoRefrainfromCertainActsRegardingConflictsofInterest).3.WhatstepswouldyourecommendMs.Johnsontaketoaddresstheconflictofinterestandensurethatsheactsinthebestinterestsofherexistingclients?4.Discusstheimportanceofmaintainingindependenceandobjectivityinyourownpracticeasaportfoliomanager.ExplainhowyouwouldensurethatyourrelationshipwithMs.Johnsondoesnotcompromiseyourabilitytoprovideobjectiveinvestmentadvicetoherandotherclients.5.HowwouldyoucommunicatewithMs.Johnsonaboutyourconcernsandrecommendationsinthissituation?Whatapproachwouldyoutaketoensurethattheconversationisprofessional,respectful,andfocusedonherbestinterestsasaclientandasanindividual?CaseStudy4:InvestmentToolsandStrategiesYouareaportfoliomanageratafirmthatspecializesinalternativeinvestments.Youaretaskedwithdevelopinganinvestmentstrategyforanewclientwhoisinterestedinallocatingaportionoftheirportfoliotohedgefunds.Theclientisahigh-net-worthindividual,Mr.Brown,whois45yearsoldandhasalong-terminvestmenthorizon.Hehasahighrisktoleranceandisseekingexposuretoalternativeinvestmentsthatmayprovidesuperiorreturnsanddiversificationbenefits.Hehas$1millionthathewantstoallocatetohedgefundsandisinterestedinlearningmoreaboutthedifferenttypesofhedgefundsavailableandthestrategiestheyemploy.BasedonMr.Brown'ssituationandobjectives,addressthefollowing:1.Describethekeyfeaturesofhedgefunds,includingtheirinvestmentobjectives,strategies,andstructures.Discussthepotentialbenefitsandrisksofinvestinginhedgefunds.2.Explainthedifferenttypesofhedgefundstrategies,suchaslong/shortequity,event-driven,macro,andquantitativestrategies.Provideabriefdescriptionofeachstrategyanddiscussthefactorsyouwouldconsiderwhenevaluatingahedgefundmanager'strackrecordineachstrategy.3.Discusstheroleofhedgefundsinadiversifiedinvestmentportfolio.Explainhowhedgefundscanpotentiallyimproveportfolioreturnsandreduceoverallrisk.4.Mr.Brownisconcernedaboutthehighfeesassociatedwithhedgefunds.Discussthedifferentfeestructurescommonlyusedbyhedgefunds,suchasmanagementfeesandperformancefees.Explainhowthesefeescanimpacttheclient'sreturnsandwhatfactorsyouwouldconsiderwhenevaluatingthefeestructureofahedgefund.5.DescribetheprocessyouwouldfollowtoconductduediligenceonpotentialhedgefundinvestmentsforMr.Brown.Discussthekeyfactorsyouwouldconsiderduringtheduediligenceprocess,suchasthefund'strackrecord,manager'sexperience,riskmanagementpractices,andcompliancerecord.试卷答案CaseStudy1:InvestmentPortfolioManagementforaHigh-Net-WorthClient1.KeyStepsforDevelopinganIPS:*DefineInvestmentObjectives:Establishclear,measurable,achievable,relevant,andtime-bound(SMART)objectives.ForMr.Smith,thisincludesoutpacinginflation,ensuringasafewithdrawalrate,fundingchildren'seducation,andgeneratingsufficientincomeinretirement.*DetermineRiskTolerance:AssessMr.Smith'swillingnessandabilitytotakerisks.Whilehehasamoderaterisktolerance,hisageandretirementgoalsimplyaneedtobalancegrowthwithcapitalpreservation.*IdentifyTimeHorizon:Theprimarytimehorizonsare10yearsforchildren'seducationand10years(untilretirement)forretirementincomeneeds.*EstablishConstraints:Considerlegal,regulatory,liquidity,tax,anduniqueconstraints.Mr.Smith'smortgage,emergencyfund,andpotentialneedforestateplanningarekeyconstraints.*OutlineInvestmentPolicy:Specifyassetclasses,investmentstrategies,portfoliolimits(e.g.,sector/geography),costlimits,monitoringfrequency,andrebalancingcriteria.Thisdocumentservesasacontractbetweenthemanagerandclient.*RationaleforIPSComponents:TheIPSprovidesaframeworkforconsistentdecision-making,alignsthemanager'sactionswiththeclient'sgoals,andreducesconflictsofinterest.Itclarifiesexpectationsandprovidesabasisforevaluatingperformance.2.FactorsforAssetAllocation:*InvestmentObjectives&TimeHorizon:The10-yeareducationgoalrequiresamoreconservativeallocation,whilethe10-yearretirementgoalallowsforamoderatelevelofriskforgrowth.Thelong-termretirementneed(20years)cantoleratehigherriskforpotentialcapitalappreciation.*RiskTolerance:Moderaterisktolerancesuggestsabalancedapproach,avoidingexcessiveexposuretohigh-volatilityassetswhilestillseekinggrowth.*Constraints:The$1.5Mmortgagesuggestsaneedtoensuresufficientliquidityandpotentiallyusesomeassetstopaydownthemortgage,reducingrelianceoninvestmentincome.Theexisting$5Mstockportfolioindicatessomelevelofexposurethenewportfolioshouldconsiderintegratingordiversifyingagainst.*MarketConditions:Currenteconomicenvironment(interestrates,inflation,geopoliticalrisks)shouldbeconsidered.*RecommendedAllocation(Example):Apotentialstartingallocationcouldbe20%Cash/Equity(domestic,potentiallyincludingsomedividend-payingstocksorbondsforincome),40%GlobalEquities(diversifiedacrossdevelopedandemergingmarkets),20%RealEstate(e.g.,REITsordirectproperty),15%AlternativeInvestments(e.g.,hedgefundsorprivateequitywithafocusondiversification),5%FixedIncome(high-quality,potentiallyinternational).*Thisisanillustrativeexampleandwouldbetailoredbasedondetailedanalysis.*3.IncorporatingAlternativeAssets:*InternationalAssets(GlobalEquities&RealEstate):Diversificationacrossdifferentcountriesandregionsreducescountry-specificrisk.Globalequitiesofferexposuretointernationalgrowthopportunities.Internationalrealestatecanprovidediversificationandpotentialinflationhedging.Benefitsincludereducedcorrelationwithdomesticmarkets.Risksincludecurrencyrisk,politicalrisk,anddifferentregulatoryenvironments.*RealEstate(REITs/Property):Providesexposuretotherealestatemarketwithoutdirectownership.Benefitsincludepotentialincomegeneration,inflationhedging,andlowcorrelationtostocksandbonds.Risksincludeinterestratesensitivity,property-specificrisks,andliquidityissues(especiallyfordirectproperty).*PrivateEquity:Offersexposuretoilliquidinvestmentsinprivatecompanies,potentiallyofferinghighreturnsanddiversification.Benefitsincludepotentialforsuperiorrisk-adjustedreturnsandinflationprotection.Risksincludehighfees,illiquidity(lock-upperiods),lackoftransparency,andmanagerdependence.ForMr.Smith,aportioninwell-vetted,diversifiedprivateequityorhedgefundsmightbeappropriategivenhisrisktoleranceandallocation,butshouldbeasmallerpartoftheportfolioduetoilliquidity.4.StrategiestoProtectAgainstInflationRisk:*Inflation-LinkedBonds:InvestingaportionofthefixedincomeportfolioinTIPS(TreasuryInflation-ProtectedSecurities)orsimilarinflation-linkedbondsprovidesprotectionagainstrisinginflationasprincipaladjustswithCPI.*RealAssets:Asmentioned,realestateandcommodities(thoughlessdirect)canactashedgesagainstinflation.*Equities:Equities,particularlythoseinsectorssensitivetoinflation(e.g.,consumerstaples,energy,materials),canofferreturnsthatoutpaceinflationoverthelongterm,thoughtheyarenotguaranteed.*Diversification:Holdingawell-diversifiedportfolioacrossassetclassescanreducetheimpactofanysingleassetclassunderperformingduetoinflation.*Income-GeneratingAssets:Includingassetsthatgenerategrowingincome(e.g.,dividendstocks,realestateincome)canhelpmaintainpurchasingpower.5.PortfolioMonitoringandRebalancing:*Importance:Marketmovementscausetheportfoliotodriftfromitstargetallocation.MonitoringensurestheportfoliostaysalignedwiththeIPSandobjectives.Rebalancingrestoresthetargetweights,capturinggainsandmanaginglosses,andimplementingtheinvestmentstrategy.*MonitoringProcess:Regularlyreviewportfolioperformanceagainstbenchmarks,assessmarketconditions,evaluateassetclassperformance,andreviewMr.Smith'schangingcircumstances(e.g.,income,expenses,risktolerance).Thiscouldbequarterlyorsemi-annually.*RebalancingProcess:Comparecurrentassetweightstotargetweights.Sellassetsthathaveappreciatedsignificantlyandbuyassetsthathaveappreciatedless,returningtheportfoliotoitstargetallocation.Considerthetransactioncostsassociatedwithrebalancing.*Frequency:GivenMr.Smith'ssignificantportfolioandlongtimehorizons,anannualreviewandpotentialrebalancingmightbeappropriate,perhapsincreasingtosemi-annualifsignificantmarketmovementsoccurorifhiscircumstanceschange.Theeducationgoalmightrequiremorefrequentmonitoring(e.g.,annually)asthedeadlineapproaches.CaseStudy2:FinancialStatementAnalysisandValuationofaTechnologyCompany1.FinancialRatiosAnalysis:*Profitability:CalculateGrossMargin(Revenue-CostofGoodsSold)/Revenue,OperatingMargin(OperatingIncome/Revenue),NetProfitMargin(NetIncome/Revenue).Trendsshowconsistentgrowthinprofitability,indicatingimprovingoperationalefficiencyandpricingpower.CalculateReturnonAssets(ROA)=NetIncome/TotalAssetsandReturnonEquity(ROE)=NetIncome/TotalEquitytoassessreturnsgenerated.Comparetheseratiostoindustryaverages.*Liquidity:CalculateCurrentRatio(CurrentAssets/CurrentLiabilities)andQuickRatio(CurrentAssets-Inventory)/CurrentLiabilities.Trendsshouldshowsufficientliquidity,indicatingthecompanycanmeetitsshort-termobligations.Adecliningtrendmightsignalincreasingpressureonworkingcapital.*Solvency:CalculateDebttoEquityRatio(TotalDebt/TotalEquity)andInterestCoverageRatio(EBIT/InterestExpense).TheDebttoEquityof0.5ismoderate.TheInterestCoverageratiomeasurestheabilitytocoverinterestpaymentswithearnings.Trendsherearecrucial;improvingcoverageispositive,whiledeterioratingcoveragesuggestsincreasingfinancialrisk.*Interpretation:Overall,positivetrendsinprofitabilityandmoderatesolvencyarefavorable.Theanalystmustassessifthesetrendsaresustainableandwhatdriversarebehindthem(e.g.,marketsharegrowth,costcuts,productinnovation).2.ValuationMethods:*Method1:DiscountedCashFlow(DCF):*EstimateFutureFreeCashFlows(FCF):ProjectFCFforthenext5-10years,consideringexpectedrevenuegrowth,operatingmarginimprovements/declines,capitalexpenditures,andchangesinworkingcapital.Assumealong-termterminalgrowthrate(e.g.,2-3%).*DeterminetheDiscountRate(WACC):Calculatetheweightedaveragecostofcapitalusingthecostofequity(e.g.,usingCAPM)andthecostofdebt(adjustedfortaxes),weightedbytheirrespectiveproportionsinthecapitalstructure.*CalculateValue:DiscounttheprojectedFCFsandtheterminalvaluebacktothepresentusingtheWACC.Dividebythenumberofsharesoutstandingtogettheper-shareintrinsicvalue.**Rationale&Limitations:*DCFistheoreticallythemostfundamentalmethod,valuingthecompanybasedonitsexpectedfuturecashflows.Limitationsincludesensitivitytoinputassumptions(growth,WACC,terminalrate),difficultyinforecastingforcyclicalorhighlyinnovativecompaniesliketech,andrelianceonaccuratefinancialprojections.*Method2:ComparableCompaniesAnalysis(CCA):*IdentifyComparableCompanies:Select3-5publiclytradedpeercompaniesinthesameindustrywithsimilarbusinessmodels,size,growthprospects,andriskprofiles.*CalculateValuationMultiples:ComputeP/Eratio(StockPrice/EarningsPerShare),EV/EBITDA(EnterpriseValue/EarningsBeforeInterest,Taxes,Depreciation,andAmortization),P/S(StockPrice/SalesPerShare)foreachcomparablecompany.*DetermineAverage/MedianMultiples:Calculatetheaverageormedianmultipleforthecomparables.*ApplyMultiplestoTechCorp:Applytheaverage/medianmultiplestoTechCorp'srelevantmetrics(EarningsPerShare,EBITDA,Sales)toestimateitsenterpriseorequityvalue.Divideequityvaluebysharesoutstandingforper-sharevalue.**Rationale&Limitations:*CCAispracticalandreflectscurrentmarketvaluesandexpectations.Limitationsincludefindingtrulycomparablecompanies,potentialdifferencesinaccountingstandardsorbusinessmodels,andmarkettimingbiases(valuationcanbehighorlowdependingonmarketsentiment).3.PotentialRisks:*IndustryCompetition:Intensecompetitionfromothertechnologycompanies(e.g.,cloudproviders,AIdevelopers,socialmediaplatforms)canerodemarketshare,pricingpower,andprofitability.*RegulatoryEnvironment:Technologycompaniesfacescrutinyfromregulatorsregardingdataprivacy(e.g.,GDPR,CCPA),antitrustissues,andpotentialgovernmentinterventionortaxation.*TechnologicalDisruptions:Rapidtechnologicaladvancementscanrenderexistingproductsorbusinessmodelsobsolete.Thecompanyneedstocontinuouslyinnovatetomaintainitscompetitiveedge.*EconomicSensitivity:Thedemandforcertaintechproductsandservicescanbesensitivetoeconomiccycles.*CybersecurityRisks:Thecompanyisvulnerabletocyberattacks,whichcanresultindatabreaches,financiallosses,andreputationaldamage.*ManagementRisk:Thesuccessofatechcompanyishighlydependentonthequalityandvisionofitsleadershipteam.4.InvestmentRecommendationReportFactors:*Emphasizethecompany'sstronggrowthprospects,competitiveadvantages(e.g.,proprietarytechnology,brandstrength,networkeffects),andpotentialtocapturesignificantmarketshare.*Highlightpositivetrendsidentifiedinthefinancialanalysis(e.g.,improvingprofitability,strongreturnmetrics).*Discussthecompany'sstrongbalancesheetandpotentialforfutureinvestment.*Addressriskstransparentlybutbalancethemwiththepotentialrewards.Explainhowtherisksaremanageableorhowthecompanyispositionedtomitigatethem.*Comparethecompany'svaluationtoitspeersandhistoricallevels,arguingwhyitisreasonableorundervaluedgivenitsgrowthprospectsandquality.*Supportthe"buy"recommendationwithawell-reasonedargumentbasedonfundamentalanalysis,industrytrends,andthecompany'sspecificstrengths.5.ShareBuybackProgram:*Benefits:*Returnscapitaltoshareholders,potentiallyincreasingearningspershare(EPS)ifthestockisundervalued.*Cansignalmanagement'sconfidenceinthecompany'sfutureprospects.*Canimprovereturnonassets(ROA)andreturnonequity(ROE)byreducingtheassetbaseorequity.*Providesliquiditytoshareholders.*Canbemoretax-efficientforshareholderscomparedtodividendsinsomejurisdictions.*Drawbacks:*Usescashthatcouldpotentiallybereinvestedinthebusinessforgrowth,R&D,acquisitions,ordebtreduction.*Mayindicatealackofattractiveinvestmentopportunitieswithinthecompany.*Canbeseenasmanagementprioritizingcurrentshareholdervalueoverlong-termgrowth.*Mayincreasefinancialleverageifthebuybackisfundedbydebt.*Ifthestockisovervalued,thebuybackcandestroyshareholdervalue.CaseStudy3:EthicsandProfessionalStandardsinInvestmentAdvice1.EthicalDilemma&ConflictsofInterest:*Dilemma:Ms.Johnsonfacesaconflictbetweenherpersonalloyaltytoherfriend(whoisalsoaclient)andherprofessionaldutytoprovideobjectiveadvice.Acceptingthejobofferwhilekeepingherportfoliowiththecurrentfirmcreatesasituationwhereherfriend'spotentialsuccesscouldbeinfluencedbyhermanagementdecisions,potentiallycompromisingherfiduciarydutytoher*other*clients.Thecompetingfirm'soffertopayhertoswitchportfolioscreatesafinancialincentivethatfurthercomplicatesherabilitytoremainobjective.*ConflictsofInterest:Theprimaryconflictisa*conflictofloyalty*(StandardI(A))–herdutytoherfriendpotentiallyconflictswithherdutytoherexistingclient.Thereisalsoapotential*conflictofinterestarisingfromcompensation*(StandardVI(A))ifthecompensationfromthecompetingfirminfluencesherrecommendationsoractionsregardingtheexistingportfolio.Thereisalsoa*self-interestconflict*(StandardVI(B))ifsheusesnon-publicinformationaboutherfriend'spotentialswitchtomakeadvantageoustradingdecisionsinherownorthefirm'sportfolio.2.ApplicationofCFAInstituteCodeandStandards:*StandardI(A)(DutytoActforClient'sBenefit):Themanager'sprimarydutyistoactinthebestinterestsofherclient,Ms.Johnson.Thismeansrecommendingthecourseofactionthatismostappropriatefor*her*financialsituationandgoals,notnecessarilytheonethatbenefitsherfriendorthecompetingfirm.TakingthejobandswitchingportfoliosmightnotbeinMs.Johnson'sbestinterest,especiallyifitinvolvescostlytransactionfeesorunderperformingalternatives.*StandardII(A)(DutytoExerciseDueCareandDiligence):Themanagermustexercisereasonablecare,skill,anddiligenceinprovidinginvestmentadvice.ThisrequireshertofullydisclosetherelevantfactsofthesituationtoMs.Johnson,includingthepotentialconflictsofinterest,andtoperformathoroughanalysisoftheimplicationsofswitchingfirms.ShecannotsimplyignoretheconflictorassumeMs.Johnsonisunaware.*StandardVI(A)(DutytoRefrainfromCertainActsRegardingConflictsofInterest):Thisstandardrequiresmemberstodiscloseanyconflictsofinteresttotheirclientsandtakereasonablestepstomitigateoreliminatethem.Themanager*must*immediatelydisclosetheoffertoswitchfirmsandthepotentialconflictstoMs.Johnson.Sheshouldexplainhowtheoffercreatesaconflictandwhyitcompromisesherabilitytoprovideobjectiveadvice.Shemustalsoexplainthatshecannotcontinuemanagingtheportfoliowhilesimultaneouslybeingofferedacompetingjob.*StandardVI(B)(DutytoRefrainfromCertainActsinRegardtoSelf-Interest):Thisstandardprohibitsmembersfromengagingincertainself-interestedactsthatcouldharmclients.Whilenotdirectlyapplyingtothefriend'ssituation,itreinforcestheprinciplethatthemanager'sactionsmustalwaysprioritizetheclient'sinterests.3.StepsforMs.Johnson:*AcknowledgetheConflict:Ms.Johnsonshouldrecognizethatthesituationcreatesasignificantconflictofinterestthatcompromisesthemanager'sabilitytoprovideobjectiveadvice.*RequestFullDisclosure:Ms.Johnsonhastherighttodemandfulldisclosurefromthemanagerregardingtheofferandthepotentialconflicts.*SeekIndependentAdvice:Giventheconflict,Ms.Johnsonshouldconsiderobtainingindependent,objectiveadvicefromanotherqualifiedadvisorbeforemakinganydecisions.Thisadvisorshouldhavenoconnectiontothecurrentfirmorthecompetingfirm.*EvaluateOptions:Ms.Johnsonshouldweightheprosandconsofstayingwiththecurrentmanager(whonowhasapersonalconflict)versusswitchingtothecompetingfirm(whichofferedherajobandpotentiallybettercompensation,butmightalsohavedifferentpracticesorfiduciarystandards).Sheshouldconsiderthecostsandbenefitsofswitchingportfolios,thequalityofthecompetingfirm'sservices,andherowncomfortlevelwiththetransition.*DecideonCourseofAction:Basedonherindependentanalysisandadvice,Ms.Johnsonshouldmakeaninformeddecisionaboutwhethertostaywiththecurrentfirm(perhapsafterdiscussingtheconflictwiththemanagerandseekingalternativearrangements)orswitchtothecompetingfirm.4.MaintainingIndependenceandObjectivity:*Importance:IndependenceandobjectivityarefundamentaltotheCFAcharterandtheprofession.Themanagermustprovideadvicethatisunbiasedandbasedsolelyontheclient'sbestinterests,fre