Ethical And Professional Standards MCQ - Ethical And Professional Standards Section 1

11 Which of the following is least likely a reason for laws being insufficient to ensure ethical conduct among market participants?

Laws can vary across jurisdictions. This may encourage questionable practices to move to places that are less restrictive in nature. Statements A and C are valid reasons for why the law alone might be insufficient to ensure ethical behavior.

12 Which of the following statements about the ethical decision framework is/are most likely accurate?

Statement 1: An ethical decision framework helps decision-makers justify actions to stakeholders.

Statement 2: Too many choices can at best lead to inaction.

Statement 3: An ethical decision framework serves as a tool for investment professionals to choose the best possible alternative.

All three statements regarding ethical decision frameworks are correct.

13 Which of the following parties should an investment professional consider as stakeholders while making decisions in an ethical manner?

An investment professional should consider the risk to all stakeholders such as an employer, clients, family, and market participants while making decisions.

14 Which of the following would be a step in the consideration phase in an ethical decision-making process?

Statement A is a step once the decision is already made and Statement C is a step in the identification phase of the ethical decision-making process.

15 A CFA Institute candidate enrolled for the Level II program has a popular Facebook page under a pseudonym. He posts exam-style questions to his page every day that has taken the number of likes from 50 to over 3,000 in less than four months. After the exam, the candidate expresses his displeasure over the topics that were not tested. As a first step, this act would most likely result in:

A professional conduct inquiry will be initiated.