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Answer: comprehending the underlying assumptions and limitations of the model developed by others.
According to **Standard V(A) - Diligence and Reasonable Basis**, CFA members are not required to develop or co-develop a quantitative model themselves (Option A) nor become experts in every technical aspect of the model (Option B). Instead, they must **understand the assumptions and limitations** inherent in any model used, as well as how the model's results inform decision-making. This ensures that members can critically evaluate the model's applicability and reliability in their investment research. The correct answer is **C**, as it aligns with the requirement to comprehend the model's foundational aspects without needing technical mastery.
Author: LeetQuiz Editorial Team
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To incorporate a quantitative model into her investment research, a CFA member must adhere to the Standards by:
A
developing or co-developing the model.
B
mastering every technical detail of the model created by others.
C
comprehending the underlying assumptions and limitations of the model developed by others.
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