Ethics

CFA Level I Ethics
#1

"An analyst has found an investment with what appears to be a great return-to-risk ratio. The analyst double-checks the data for accuracy, keeps careful records, and is careful to not make any misrepresentations as he simultaneously sends an e-mail to all his clients with a “buy” recommendation. According to Standard V(A), Diligence and Reasonable Basis, the analyst has:

A)

violated the Standard by communicating the recommendation via e-mail.

B)

fulfilled all obligations.

C)

violated the Standard if he does not verify whether the investment is appropriate for all the clients." from Kaplan Schweser

Is the answer B because the question specifically mentions about Standard 5? If the question did not mention standard 5 then would the answer be C

#2

On the real exam, the question or answer will always cite a specific standard.

#3

Thanks for the reply. If the question mentioned to check the process wth respect to standard 3 c suitability . Would then the answer be C?

#4

Yes.