In Ethics item sets in CAFI,
In the below question, since Shera has done the recommendation and timed the target price, does not this mean that she has gone throughly through the third party research to come up with the recommendation and target price?
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Any suggestions?
She based her recommendation on a report she received from a sell side analyst, without making reasonable and diligent efforts to determine if the report is sound (as it is a must under Standards: Diligence and reasonable basis).
Issuing a recommendation and determining target price doesn’t necessarily means she analyzed or gone reviewed the report, she may has based it solely on the third party’s report.