According to the Code and Standards, which of the following actions is proper with
regard to investing in oversubscribed issues?
Detailed Answer
C
2
According to the Code and Standards, which of the following actions is proper with
regard to investing in oversubscribed issues?
Detailed Answer
C
3
According to the Code and Standards, which of the following actions is proper with
regard to investing in oversubscribed issues?
Detailed Answer
C
4
According to the Code and Standards, which of the following actions is proper with
regard to investing in oversubscribed issues?
Detailed Answer
C
5
According to the Code and Standards, which of the following actions is proper with
regard to investing in oversubscribed issues?
Detailed Answer
C
6
According to the Code and Standards, which of the following actions is proper with
regard to investing in oversubscribed issues?
Detailed Answer
C
7
Carl St. Germaine believes that reports published by his firm and used as part of
presentation materials contain sections that are in violation of the Code and
Standards. He has brought the conduct to the attention of the firm’s legal counsel,
whose opinion is that the reports can be presented because they are not in violation of
any law. He has brought the activity to the attention of the firm’s compliance officer,
whose recommendation is to trust the opinion of legal counsel. He has taken his
concerns to his supervisor, who also concludes that there is nothing to be concerned
about, given the counsel’s advice. According to the Code and Standards, what should
Carl do?
Detailed Answer
B
8
Joanna Wasic is a research analyst for a fund of hedge funds. She learns that a
portion of the firm’s research, prepared by another department, includes survivorship
bias such that some of the firm’s performance is exaggerated. Joanna presents the
report to prospective clients in order to solicit new business, but steers clear of any
reference to the exaggerated performance.
Which of the following describes Joanna’s behavior with respect to the Code and
Standards?
Detailed Answer
A
9
Nadia Petrav is an investment advisor and holds a professional designation that
requires all members to adhere to the Code and Standards. She works for a
multinational investment company located in the United States, but is registered in,
does business in, and lives in an emerging country with laws and regulations
considered less strict than the Code and Standards. Her home country does not allow
advisors to hold short positions for their clients or in their personal account. Which
of the following best describes her requirements, according to the Code and
Standards?
Detailed Answer
D
10
Sharma Vora, a research analyst for the pharmaceutical industry, has recommended
that the firm take an equity interest in CISDA, a small biotechnology firm. After
writing and publishing his initial report, Sharma purchases CISDA stock for his own
portfolio. He has been asked to write a second report on CISDA. What action should
Sharma take in order to be compliant with the Code and Standards?
