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Ethical and Professional Standards Q88

0. Carla Simone, a CFA candidate and a research analyst, follows firms in the beverage industry. She has been recommending the purchase of Citrus, because of its introduction of a popular new drink for athletes and exercise enthusiasts. Simone‟s husband has inherited from a relative, the stock of Citrus worth $3.5 million. Simone has been asked to write a follow up report on Citrus. She writes the report and gives a strong buy recommendation. The report does not mention her husband‟s ownership of the stock. Has Simone violated the CFA Institute Standards?

  • Option : B
  • Explanation : Simone must disclose her husband’s ownership of the stock to avoid violation of Standard VI(A) Disclosure of Conflicts.
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