商业伦理习题

1CFAInstitutebelieves: Cthatamaximumlevelofprofessionalresponsibilityandconductdictatesthatmembersbeawareofandcomplywithlaws,rules,andregulationsgoverningtheirconduct.thatfirmsshouldcomplywithalldomesticlawsandregulationsandthattheselawsalsogovernbehaviorinforeignmarkets,regardlessofforeignlawsandrequirements.thataminimumlevelofprofessionalresponsibilityandconductdictatesthatmembersbeawareofandcomplywithlaws,rules,andregulationsgoverningtheirconduct.2 KennyBarrett,CFA,isworkingintheAustralianofficeofAmericanInvestmentsCo.Fromaninformalconversation,Barrettlearnsthatthecompany'smostrecentinvestmentreportwasbasedonmisappropriatedinformation.NooneattheAustralianofficeexpressesconcern,however,becausetherehasbeennobreachofAustralianlaw.Barrettshould: Cdisassociatehimselffromthecasewithawrittenreporttohissupervisor.donothingbecausethebranchisoutsideofU.S.jurisdiction.seekadvicefromcompanycounseltodetermineappropriateaction.3 ForanemployeewiththeCFAdesignationwhoworksforafirm,whichofthefollowingisNOTnecessarytomeettherequirementsoftheCodeandStandards? CItisrecommendedthattheiremployerisawareoftheCodeandStandards.RecommendnotifyingtheiremployeroftheirresponsibilitytofollowtheCodeandStandards.DeliveracopyoftheCodeandStandardstotheiremployer.4IfaCFAInstitutememberknowsthatafellowemployeehasviolatedalaw,accordingtoStandardI(A)themember:Ashouldseekadvicefromthefirm'slegalcounseloracomplianceofficer.isrequiredtoreporttheemployeeviolatingthelawtotheappropriategovernmentalauthority.isrequiredtoreporttheemployeeviolatingthelawtotheappropriatesupervisorinthefirm.5TheSEC'snewstocktradingrulehasjustgoneintoeffect.TheSECwillgivebrokersa10daygraceperiod,duringwhichviolatorsoftherulewillbeimmediatelynotifiedandgivenachancetoremedytheirsituationtocomplywiththenewrule.IfaCFAInstitutememberunknowinglyviolatestheruleandthenremediesthesituationwithinthe10daygraceperiod,hasthememberviolatedStandardI(A)?CNo,becausethememberunknowinglybroketherule.No,becausethememberremediedthesituation.Yes,becausethememberdidnotmaintainknowledgeandknowoftherule.6ACFAInstitutememberisalsoamemberandtheportfoliomanagerofanenvironmentalistgroup.Initscharter,theenvironmentalistgrouplistsagroupofcompaniesitsmembersshouldboycott.TheCFAInstitutememberwouldviolateStandardI(A)concerningobeyingallrulesandregulationsifthemember: Cactivelyprotestsagainstapubliclytradedfirmboycottedbythegroup.performseitheroftheactivitieslistedhere.purchasesstockofaboycottedfirmforthegroup'sportfolio.7 AllenParsons,aCFAcandidate,suspectsacolleagueathisfirmofengaginginanillegalactivity.WhichofthefollowingstatementsaboutproceduresforcomplianceinvolvingStandardI(A),KnowledgeofthelawisNOTcorrect?Parsons:Bshouldurgehisfirmtoattempttopersuadetheperpetratortoceasesuchconduct.isrequiredtoreportthislegalviolationtotheappropriategovernmentalorregulatoryorganizations.shouldconsultcounseltodeterminewhethertheconductis,infact,illegal.8MichaelBellow,CFA,CAIA,isaninvestmentbankerwhoisinvolvedwithaninitialpublicoffering(IPO)ofNewCo.BecausethisisBellow'sfirstinvolvementinanIPO,hereportstoanexperiencedsupervisor.WhilereviewingpastfinancialstatementsprovidedbyNewCo,BellowsuspectsthatNewCodeliberatelyoverstateditsearningsforthepastseveralquarters.Bellowseekstheadviceofhisfirm'shighlycompetentgeneralcounselandfollowstheadvicegivenwithoutdeviation.Basedonthegeneralcounsel'sadvice,Bellowconsultshisimmediatesupervisoraboutthesuspectedoverstatementofearnings.Afterreviewingthesituation,Bellow'ssupervisorexplainswhyNewCo'scalculationsofitsearningsarecorrect.BellowrealizesthathisinexperienceandexuberanceinitiallyledhimtoanincorrectconclusionaboutNewCo'searnings.WhichofthefollowingstatementsaboutBellow'sactionsinvolvingStandardI(A),Knowledgeofthelaw,andStandardI(C),Misrepresentation,isCORRECT?Bellow:BviolatedStandardI(A)butdidnotviolateStandardI(C).didnotviolateeitherStandardI(A)orStandardI(C).violatedbothStandardI(A)andStandardI(C).9RobeAdvisoryServicesoperatesanofficeinSanFrancisco,whereitmanagesportfoliosforitsclientsbasedintheUnitedStates.ThefirmalsomaintainsanofficeinTokyo,whereitemploysSamLee,CFAwhoresearchesJapanesestocks.AccordingtotheCFAInstituteStandardsofProfessionalConduct,Leeisrequiredtomaintainknowledgeofandcomplywithallapplicablelaws,rules,andregulationsin:BboththeU.S.andJapan,butnottheCFAInstituteStandardsofProfessionalConductboththeU.S.andJapanandtheCFAInstituteStandardsofProfessionalConduct.Japan,butnottheU.S.,andtheCFAInstituteStandardsofProfessionalConduct.10 SometimesaCFAInstitutemembersimplyfeelsalawhasbeenviolatedbyhisfirm,andsometimesthememberknowsalawhasbeenviolated.WhichofthefollowingpairsofguidelinesisCORRECTwithrespecttothefirststepamembershouldtakeineachcase?Themembershouldfirstcontact:Chissupervisorinthefirmifhefeelsalawhasbeenviolatedandcontactthefirm'scounselifheknowsalawhasbeenviolated.thefirm'scounselifhefeelsalawhasbeenviolatedandtheSECifheknowsalawhasbeenviolated.thefirm'scounselifhefeelsalawhasbeenviolatedandcontacthissupervisorifheknowsalawhasbeenviolated.11 BobBlanford,CFA,isaninvestmentanalystforalargeglobalbrokeragefirm.HerecentlymovedtoRagatan,adevelopingcountrywithfewsecuritieslawsandregulations.Aspartof conductingacompanyanalysis,BlanfordinterviewsRaviShanti,vicepresidentoffinanceatStarrIndustries.StarrisamajorindustrialfirminRagatanandaclientatBlanford'sfirm.Basedonhisanalysis,BlanfordsuspectsthatShantimayhavedeliberatelyoverstatedStarr'scurrentearningsanditsearningsforthepastseveralquarters.Ifthisinformationbecomespublic,BlanfordbelievesthatStarr'sstockpricewilldropsubstantially.BlanfordsuspectsthatShantimayhaveviolatedRagatan'ssecuritieslaws.WhichofthefollowingstatementsisleastlikelytocomplywithStandardI,Professionalism?Blanfordshould:Cdeterminethelegalityoftheactivity,possiblybyconsultingcounsel.disassociatehimselffromtheclient,iftheactivityisillegalorunethical.takenoaction.12ShortlyafterbecomingemployedbyValco&Co.,aninvestmentbankingfirm,StanMcDowell,CFA,learnsthatmostofValco'sinitialpublicofferings(IPO)arereallyeffectedinordertoprofitmanagementviapricemanipulationoftheshares.McDowellobservesanillegalact,sanctionedbyseniormanagement,inprogressandrefusestosignoffonhisresponsibility.Instead,McDowelltakesthedocumentationtohissupervisorandtellshimheshouldsignitinhisplace.Thisactionis:aviolationoftheCodeandStandardssinceheisrequirednottoknowinglyparticipateorassistinsuchanact.Aasuitablereaction,andheisincompliancewiththeCodeandStandards.anoverreaction.Seniormanagement'ssanctioningoftheactabsolvesMcDowellfromhisordinaryresponsibilityasaCFAInstitutemember.13JanetGreen,CFA,providesinvestmentadviceandotherservicestoclientsinseveralcountries.SheresidesinCountryAwhosesecuritieslawsandregulationsarelessstrictthantheCodeandStandards.ShealsoconductsbusinesswithclientsinCountryB,whichhasnosecuritieslawsorregulations,andinCountryC,whichhassecuritieslawsandregulationsthatarestricterthantheCodeandStandards.WhichofthefollowingstatementsisCORRECT?AccordingtoCFAInstituteStandardsofProfessionalConduct,GreenmustadheretotheCodeandStandardsin:CCountryAbutthelawinCountryBandCountryC.CountryA,CountryB,andCountryC.CountryAandCountryBbutthelawinCountry14ACFAInstitutememberconscientiouslymaintainsrecordsofchangesinsecurityregulations.Themembernoticesthathiscolleaguesdonot,anddoesNOTsayanything.IsthisaviolationofStandardI(A)?BYes,andthemembershoulddisassociatefromthesecolleagues.Yes,becausethememberisboundbytheCodeofEthics.No,aslongasthecolleaguesdonotviolatethenewrules15MariaValdes,CFA,isananalystforVentureInvestmentsinthecountryofNewamerica,whichhaslawsprohibitingtheacceptanceofanygiftfromavendorifthegiftexceedsUS$250.ValdeshasevidencethatherVentureInvestmentscolleague,ErnestoMartinez,CFA,hasbeenreceivinggiftsfromvendorsinexcessofUS$250.Valdesisobligatedto:Bdisassociateherselffromtheactivity,urgeVenturetopersuadeMartineztoceasetheactivity,andinformCFAInstituteandregulatoryauthoritiesoftheviolation.disassociateherselffromtheactivity,andurgeVenturetopersuadeMartineztoceasetheactivity.disassociateherselffromtheactivity,urgeVenturetopersuadeMartineztoceasetheactivity,andinformCFAInstituteoftheviolation.16ACFAInstitutememberworksforSecureSecurities,Inc.,andplaysrugbyonthefirm'srugbyteam.SecureSecurities'teamrecentlyplayedtheteamofarivalfirm.Duringthegame,afightbrokeoutandtheCFAInstitutememberwastheinstigator,butnoonewasseriouslyhurt.IsthisaviolationofI(A)concerningmaintainingknowledgeandcomplyingwithlaws,rules,andregulations?BYes,becausethememberisboundbytheCodeofEthics.No,becauseafightatarugbygameisnotaprofessionalactivity.Yes,becausethemembercouldhavehurtsomeoneinthefight.17NicholasBrynne,CFA,isafixedincomeanalystwhotradesinmortgagebackedsecurities(MBS).TheMBSindustryhasseensweepingregulatorychangessinceBrynnetookhiscurrentposition,andhenowfeelshisunderstandingofapplicablelawsandregulatorystandardsisdated.Brynnemust:Bhavealltradesreviewedbyhiscompliancedepartmentuntilhehasobtainedanexpertlevelofknowledgeincompliance.updatehisunderstandingofapplicablelawsandregulatorystandardsrelatingtohisposition.relyonhisfirm'spoliciesandproceduresforguidanceonlegalandregulatorystandards.18JaneDawson,CFA,ananalystataNewYorkbrokeragefirm,suspectsthatBobBoatman,CFA,anotheranalystatthesamefirm,hasviolatedastatesecuritieslaw.AccordingtotheCFAInstituteStandardsofProfessionalConduct,Dawsonis:ANOTrequiredtoreporttheviolationtotheappropriategovernmentalorregulatoryorganizations.requiredtoreportthesuspectedviolationtoCFAInstitute.requiredtoreportthesuspectedviolationtotheappropriatestateregulatoryagency.19 TheCFAInstituteStandardsofPracticeHandbookrequiresCFAInstitutememberstodoallthefollowingEXCEPT:Ctoinformemployer,clients,andpotentialclientsofbenefitsreceivedforrecommendingproductsorservices.receivewrittenpermissionfromboththeiremployerandoutsideclientstoengageininvestmentconsultingoutsidethefirm.todiscloseinwritingtotheproperregulatoryauthorityallobservedviolationsofthesecuritieslawsandregulations.20 WEB,aninvestmentbankingfirm,istheprincipalunderwriterforMTEX'supcomingdebentureissue.WendyBerry,CFA,ananalystwithWEB,hasfoundoutfromanemployeeinMTEX'sprogrammingdepartmentthataseriousglitchwasrecentlydiscoveredinthesoftwareprogramoftheirmajornewproductline.Infact,theglitchissobadthatmostoftheirordershavebeencanceled.Berrycheckedthedebenture'sprospectusandfoundnomentionofthisdevelopment.Theredherringprospectushasalreadybeendistributed.Berry'sbestcourseofactionisto:AinformherimmediatesupervisoratWEBofherdiscovery.keepquietsincethisismaterialnonpublicinsideinformation.notifypotentialinvestorsoftheomissiononafairandequitablebasis.21Ifananalystsuspectsaclientoracolleagueofplanningorengaginginongoingillegalactivities,whichofthestatementsabouttheactionsthattheanalystshouldtakeismostcorrect?AccordingtotheCFAInstituteStandardsofProfessionalConduct,theanalystshould:consultcounseltodeterminethelegalityoftheactivity.Bconsultcounseltodeterminethelegalityoftheactivityanddisassociatefromanyillegalorunethicalactivityifthememberhasreasonablegroundstobelievethattheactivityisillegalorunethical.disassociatefromanyillegalorunethicalactivityifthememberhasreasonablegroundstobelievethattheactivityisillegalorunethical.22 AccordingtotheCFAInstituteStandardsofProfessionalConduct,StandardI(A),KnowledgeoftheLaw,membersshallnotknowinglyparticipateorassistinanyviolationsoflaws,rules,orregulations.Ananalyst:Aisheldresponsibleforparticipatinginillegalactswhenthelawisevidenttoanyoneknowingthelawandcanparticipateinaviolationbyhavingknowledgeoftheviolationandtakingnoactiontostopitordisassociatefromit.mustreportalllegalviolationstotheproperregulatorycommissionandisheldresponsibleforparticipatinginillegalactswhenthelawisevidenttoanyoneknowingthelaw.isheldresponsibleforparticipatinginillegalactswhenthelawisevidenttoanyoneknowingthelawandisheldresponsibleforviolationsbyotherswhentheanalystisunawareofthefactsgivingrisetotheviolation.23 DelorisJohnson,CFA,suspectedthatherintern,whowasworkingwithoutpayatherbrokeragefirm,hadviolatedafederalsecuritiesregulation.Johnsondiscussedthematterwithhercompany'slegalcounselwhosaidthattheintern'sconductwasillegal.AccordingtotheCFAInstituteCodeandStandardsofProfessionalConduct,Johnsoncandissociateherselffromthisillegalactivityby:Ctellingherinterntostopsuchconduct.transferringsupervisionoftheinterntoanotherperson.reportingtheactivitytotheappropriateauthorities.24JoshuaRosenberg,CFA,isanequityanalystwhocoversNorthwestImplements,afarmimplementmanufacturer.Northwest'smainfactoryislocatedinasparselyinhabitedregionsixhoursbyautomobilefromthenearestairport.Northwesthasitsowncorporatejetandalandingstripislocatednearthefacility.WhenRosenbergcontactsNorthwest'smanagementtogatherinformationforareportheispreparingonthecompany,Northwest'schieffinancialofficer,ThomasBlake,invitesRosenbergtovisitNorthwest'sheadquartersandmeetwithmanagement.BlakeofferstosendNorthwest'scorporatejettopickupRosenbergfromanairportnearRosenberg'shomeandtoreturnhimhomethesameevening.Rosenbergestimatesthatitwouldrequirethreedaysforhimtomakethevisitusingcommercialtravel.IfRosenbergacceptsBlake'sofferandmakesthetriptoNorthwest'sheadquartersonthecorporatejet,Rosenberg: BhasviolatedtheCodeandStandardsunlesshedisclosesthetripandthepaymentofhistravelexpensesinhisreportonNorthwest.hasnotviolatedtheCodeandStandards.hasviolatedtheCodeandStandardsunlesshereimbursesNorthwestforthecostofthetrip.25InordertocomplywiththeCFAInstituteStandards,ananalystshould:Cuseonlyhisownresearchinmakinginvestmentrecommendations,becauseanythingelsewouldviolateStandardI(B),IndependenceandObjectivity.useonlyhiscompany'sresearchwhenmakinginvestmentrecommendationsanduseoutsideresearchforreportsandanalysisonstocks.useoutsideresearchonlyafterverifyingitsaccuracy.26 AnanalystwhoisaCFAInstitutememberreceivesaninvitationfromabusinessassociate'sfirmtospendtheweekendinahigh-qualityresort.InordertoabidebytheStandards,theanalystshould(may):Crefusetheinvitationiftheassociateisfromafirmheanalyzesforhisemployer.obtainwrittenconsentfromhissupervisoriftheofferiscontingentonachievingatargetinvestmentreturn.dobothoftheactionslistedhere.27Ananalystpreparingareportneedstocitewhichofthefollowing?AArecentquotefromtheFederalReserveChairman.EstimatesofbetasprovidedbyStandard&Poor's.Theindividualwhodevelopedachartfromthesamefirm.28AccordingtoCFAInstituteStandardsofProfessionalConduct,whichofthefollowingstatementsabouttheprohibitionagainstplagiarismismostcorrect?Theprohibitionagainstplagiarismappliestowrittenmaterials:Bandoralcommunicationsonly.oralcommunications,andtelecommunications.only.29Thefollowinginformationinvolvestworesearchanalystsatabrokeragefirm.ErikBagenot,CFA,ispreparingaresearchreportonGlobalEnterprises,Inc.Inpreparingthereport,heusesmaterialsfrommanysources.Forexample,heusesfactualinformationpublishedbyStandard&Poor'sCorporationwithoutacknowledgingthesource.Healsousesexcerptsfromaresearchreportpreparedbyanotheranalyst.Bagenotmakesonlyaslightchangeinwordingfortheseexcerpts,butacknowledgesthesource.SallyWain,whoiscurrentlyenrolledintheCFAprogram,ispreparingaresearchreportonMansonTelecommunications.Sheattendsaconferenceinwhichseveralinvestmentexpertsprovidetheirviewsaboutthefutureprospectsofthiscompany.Waincitesseveralquotationsfromtheseinvestmentexpertsinherreportwithoutspecificreference.AccordingtoCFAInstituteStandardsofProfessionalConductinvolvingprohibitionagainstplagiarism,whichofthefollowingstatementsisCORRECT?AWainviolatedtheStandards,butBagenotdidnot.BothBagenotandWainviolatedtheStandards.BagenotviolatedtheStandards,butWaindidnot.30WhichofthefollowingisNOTaformofplagiarism?BCitingquotationssaidtobeattributableto"leadinganalysts"or"investmentexperts"withoutspecificreference.Usingfactualinformationpublishedbyarecognizedfinancialstatisticsreportingservicewithoutacknowledgment..Presentingstatisticalforecastsbyotherswiththesourcesidentifiedbutwithoutthequalifyingstatementsthatmayhavebeenusedbytheoriginator..31 WesSmith,CFA,hasbeenworkingtowardthecompletionofaMasterofScienceinFinance.Hehaspassedallthenecessarycoursesandwrittenthenecessarythesis.Hestillmustdefendthethesisinonemonth.Smith'sthesisadvisorassureshimthathewillpassthethesisdefense.Smithhasnewbusinesscardsprintedwith"M.S.inFinance"afterhisname.Thisisaviolationof:AnoneoftheStandardsifSmithdoesnotmakethecardspublicuntilafterhedefendshisthesisandreceiveshisdegree.StandardI(C),Misrepresentation.StandardVII(B),ReferencetoCFAInstitute,theCFADesignation,andtheCFAProgram.32 SandraBulow,CFA,isresponsibleforupdatingheremployingfirm'swebsitetoincludechangesinanalysistechniquesandtradingprocedures.Sheisoftenverydelinquentinmakingthese changes,despiteworkingextensivehours.Sheisawareclientsareusingthewebsitetomakeinvestmentdecisions,andhasreceivedcomplaintsfromthesalesdepartmentastheinformationonthewebsiteifoftendifferentfromwhatispresentedinsalesmeetings.Bulowismostlikely:BnotinviolationofanyStandard.inviolationofStandardI(C)"Misrepresentation."inviolationofStandardIII(B)"FairDealing."33MarcRandall,CFA,isaninvestmentanalyst.Duringameetingwithapotentialclient,Randall'sbossstatesthat,"YoucanbesureourinvestmentswillalwaysoutperformTreasuryBondsbecauseofourfineresearchstaffmembers,likeMarc."Randallknowsthatthisstatementis:CnotinviolationoftheCodeandStandards.aviolationoffiduciarydutiesowedtoclientsundertheStandards.aviolationoftheStandardconcerningprohibitionagainstmisrepresentation.34EllenMiamoto,CFA,ispreparingaresearchreportonanemploymentagency,TempHelp,Inc.Sheincludesinherreport:AcopyofaparagraphfromareportbytheWallStreetresearchfirmofBensonSmith.AgraphMiamotohasmodifiedbasedonanoriginalgraphpreparedbyGordonThompsonthatwaspublishedintheWallStreetJournal.AchartofnationalemploymenttrendsthatMiamotocreatedusingdatafromtheU.S.government'sBureauofLaborStatistics.Inherreport,Miamotomustidentifyandacknowledge:BBensonSmith,GordonThompson,andtheBureauofLaborStatistics.BensonSmithandGordonThompson.BensonSmithonly.35 ACFAcharterholdergatherstheclosingpricesofasecurityfromawidelyreadpublication.Thecharterholderusesthedataaspartofareportsheispreparingandfailstoreportthedatasourceinthereport.Thisis:AnotaviolationofStandardI(C)ifthedatacanbegatheredfromseveralpublicsources.aviolationofStandardI(C).notaviolationofStandardI(C)ifthedatacannotbegatheredfromseveralpublicsources.36Amoneymanagerworksforafull-servicebrokeragefirm.Aftermeetingwithanewclientandgatheringallrelevantinformation,themoneymanagersaysthatshethinksherfirmcanperformallthefinancialservicesthenewclientneeds.WithrespecttoStandardI(C),Misrepresentation,this:Amaynotbeaviolationifthemanager'sopinionisbaseduponthefactualinformationgathered.maynotbeaviolationiftherepresentationwasmadeorally.isaviolationbecauseshecannotmakestatementslikethisunderanycircumstances.37NancyHall,acandidateintheCFAprogram,isananalystforamutualfund.Aspartofherjobshe37companyvisitstointerviewexecutives.Onarecenttripshestayedwithhersisterinsteadofatahotel.IexpensesHallincludedahotelchargeof$100,whichwaslessthantheamountallowedbyheremployer.Afterreceivingacheckforherexpenses,Halldisclosedtohersupervisorthatshehadstayedwithhersisterinsofatahotel.Shealsoreturnedthe$100toheremployer.AccordingtoCFAInstituteStandardsofProfessioConduct,whichofthefollowingstatementsbestdescribesHall'sprofessionalconduct?AHallengagedinprofessionalmisconduct.HalldidnotengageinprofessionalmisconductbecauseshedidnotmeetalloftherequirementstotheCFAdesignation.Halldidnotengageinprofessionalmisconductbecausesheeventuallydisclosedthisinformationreturnedthe$100toheremployer.38ACFAcharterholderinamanagerialpositionisintheprocessofhiringnewanalysts.Ifthecharterholdconductsbackgroundchecksonthejobapplicantswithrespecttotheircharacter,thecharterholderhas:CviolatedtheCodeofEthicsbyinvadingtheapplicants'pliedwithStandardVII(A)concerningconductofmembersandcandidatesintheCFAPpliedwithStandardI(D)concerningprofessionalmisconduct.39ACFAcharterholderiscaughtshopliftingandissentencedtoninemonthsinprison.IsthisaviolationStandardI(D)Misconduct?AYes,becausethecrimeinvolvedstealing.No,becausethecrimedoesnotrelatetotheinvestmentprofession.Yes,becausetheprisonsentenceismorethansixmonths.40TimothyHooper,CFA,isasecurityanalystataninvestmentfirm.Inhissparetime,HooperservesasavolunteerforCityPride,whichcollectsclothesforthehomeless.HooperhasoccasionallygivensomeofclothetohisfriendorsoldtheclotheinsteaofreturninaloftheclothintoCityPrideCityPridediscoverswhathehasbeendoinganddismisseshim.Later,CityPridelearnsthatothervolunteerorganizatihavedismissedHooperforsimilaractions.HasHooperviolatedStandardI(D)onprofessionalmisconductintheCFAInstituteStandardsofProfessionalConduct?AYes.No,becauseHoopervolunteershisservicestoCityPride.No,becauseHooper'sconductisunrelatedtohisprofessionalactivitiesasasecurityanalyst.41ACFAcharterholderwhocomestoworkintoxicatedis:AinviolationofStandardI(D)concerningprofessionalmisconduct.notinviolationofthestandards.inviolationofStandardIV(A)concerningdutiestoemployer.42AllofthefollowingviolateStandardI(C),Misrepresentation,EXCEPT:Ccopyingaproprietarycomputerizedspreadsheetwithoutseekingauthorizationfromthecreators.citingquotesattributableto"investmentexperts"withoutspecificreferences.presenting factual information published by recognized statistical reporting services withoutacknowledgment.43 WhichofthefollowingismostlikelypermittedunderStandardI(C),Misrepresentation?BUsingexcerptsfromreportspreparedbyotherswithoutacknowledgement.Includingdatashowingthecurrentgovernmentbondyieldcurveinareporttoaclientwithoutstatingitssource.Citingquotesattributedto"investmentexperts"withoutspecificreference.44 AccordingtoCFAInstituteStandardsofProfessionalConduct,whichofthefollowingisleastlikelyaformofmisrepresentation?C44Presentingstatisticalestimatesofforecastspreparedbyotherswiththesourceidentified,butwithoutqualifyingstatementsorcaveatsthatmayhavebeenused.Attibutingspecificquotationsto"leadinganalysts"and"investmentexperts"withoutspecificreference.Usingfactualinformationpublishedbyrecognizedfinancialandstatisticalreportingservicesorsimilarsourceswithoutacknowledgment.45 Agovernmentcommitteehasconcludedthatinvestmentcompanyfeesshouldbedisclosedtoclientseachquarterandhasproposednewlegislationtorequirethis.Currently,thelegalrequirementistoreportsuchdataannually.Incompliancewithcurrentlegalrequirements,DolphinInvestmentsdisclosesitsfeesannually.EugeneShin,CFA,Dolphin'scomplianceofficer,learnsoftheproposedchangesbutdoesnotconvertDolphin'sreportingtoaquarterlybasis.Shin'sdecisionnottoact:BisaviolationofhisdutytoemployerasdefinedintheCodeandStandards.isnotaviolationoftheCodeandStandards.constitutesprofessionalmisconductasdefinedintheCodeandStandards.46GeorgiaJones,CFA,isananalystforJohnson,Thomas&Co.ShealsoservesasanoutsidedirectorforDeweyManufacturing,Inc.Inthecourseofherduties,shebeginstobelievethatDewey'sincomestatementforthemostrecentperiodmayhavebeenmisstated.GeorgiashoulddoallofthefollowingEXCEPT:BconsultwithJohnson,Thomas'rmtheSecuritiesandExchangeCommission.consultwithDeweyManufacturing'slegalcounsel.47WhichofthefollowingstatementsabouttheCFAInstituteCodeandStandardsismostaccurate?TheCodeandStandards:Cprohibitmembersfromacceptinggiftsthatcreateaconflictwiththeiremployer'sinterest.requirememberstopersuadetheperpetratortoceaseillegalactivities.donotrequirethatmembersreportlegalviolationstotheappropriategovernmentalorregulatoryorganization.48 LawrenceKellyistheChiefInvestmentOfficeratamoneymanagementcompanythatclaimsitisincompliancewithCFAInstituteSoftDollarStandards.Forthefirsttime,thecompanyhaspurchasedsecuritiesinthecountryofSantaRosa.HelearnsthatunderSantaRosenlaw,oneofthecompany'ssoftdollarpoliciesisforbidden,yettoconformwiththelaw,LawrencewouldhavetoviolatetheSoftDollarStandards,butnot48theStandardsofProfession