Ethical and Professional Standards Q76

76Kayla Donovan, CFA, works as a portfolio manager for MacBrady Securities & Co. Some of her wealthy and large clients hold long positions on Swift Delivery, which is a courier service. After analyzing her own company‟s research reports and information available on various internet sites about Swift, as well as Swift‟s company website she concludes that the stock is expected to rise sharply on the back of strong quarter-end earnings about to be released in an earnings report in a few days. She informs all MacBrady‟s clients since some of them will be at a distinct advantage once the quarter-end earnings are reported. Donovan also runs a popular blog as an independent analyst for which she has approval from her employer, where she mentions her predictions about various stocks including observations about Swift‟s stock. She discloses to her clients about her blog which they regularly visit. Has Donovan violated any CFA Institute Standards of Professional Conduct?

Option : C
Explanation : Kayla Donovan has not violated any Standard. Donovan has not caused the price of Swift to move up she has only given her opinion based on research. Further, she informed MacBrady’s clients prior to her internet broadcast and has approval from her employer to run her blog.

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