Ethical and Professional Standards Q111

111Greg Lou has been asked by his firm, Binkley Investment Management, to find an adviser for one of its funds which invests in derivatives and complex securities. Lou selects 12 firms based on their annual total return performance and finalizes on the adviser with the highest annual total return. Which CFA Institute Standards of Professional Conduct did Lou violate?

Option : C
Explanation : Lou violated Standard V(A) Diligence and Reasonable Basis by not conducting sufficient review of potential firms.

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