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Answer: Executing the single block trade without the original client's authorization.
### Explanation **Correct Answer: A** Barr violated **Standard III (E), Preservation of Confidentiality**, which requires members and candidates to maintain the confidentiality of client information. The unsolicited stock order from the client is confidential, and Barr must obtain the original client's authorization before recommending the stock to other clients or executing trades on their behalf. By executing a single block trade for the original client and others without authorization, Barr breached this standard. **Incorrect Answers:** - **B**: Discussing the order with analysts does not violate Standard III (E), as analysts are authorized employees working for the client. The standard permits sharing information with such personnel to serve the client's interests. - **C**: While Barr's discussion with analysts was permissible, the execution of the block trade without authorization was a clear violation of confidentiality standards.
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Linda Barr, CFA, a portfolio manager, receives an unsolicited stock order from a client. She discusses the order with her firm's analysts to determine its impact on the client's portfolio. The analysts conclude the stock is highly undervalued and suitable for many of Barr's clients. Barr then recommends the stock to other suitable clients and executes a single block trade for the original client and others. Barr most likely violated the Standards by:
A
Executing the single block trade without the original client's authorization.
B
Discussing the unsolicited client order with her analysts.
C
Both executing the single block trade and discussing the unsolicited client order with her analysts.