Ethical and Professional Standards Q129

0. Roland Andrade manages a small-cap, growth fund called Equity Opportunity Series – Growth. He purchases the stock of large-cap dividend paying company as it will bring stability to the fund. After the purchase, the stock has the highest holding in the fund. Which Standard did Andrade most likely violate?

Answer
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Option : A
Explanation : A large-cap dividend paying company is usually not growth-focused. By choosing this stock for the fund, Andrade has violated Standard III (C) Suitability as it does not fit the fund's investment mandate.

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