Answer-first summary for fast verification
Answer: No, Yong did not violate any Standards.
According to **Standard V(A) - Diligence and Reasonable Basis**, members and candidates must: 1. Exercise diligence, independence, and thoroughness in analyzing investments, making recommendations, and taking investment actions. 2. Have a reasonable and adequate basis, supported by appropriate research, for any investment analysis or recommendation. In this case, Yong conducted thorough research and had a reasonable basis for her original "buy" recommendation. The investment committee's disagreement does not imply a lack of diligence on Yong's part, as differing opinions can arise from the same evidence. Additionally, Yong is not required to dissociate from the report if she is satisfied that the process produced results with a reasonable basis, even if she disagrees with the final outcome. There is no evidence of a violation of **Standard III(A) - Loyalty, Prudence, and Care**, as the issue does not pertain to client interests or conflicts of interest. Therefore, the correct answer is **A**.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
Sue Yong, CFA, is an analyst at a large investment firm. After conducting thorough research, she issues a "buy" rating on a company and submits her report to the firm's investment committee for review. The committee disagrees with Yong's assumptions, leading to a change in the report's rating to "neutral." Yong agrees to leave her name on the final report. Did Yong violate the CFA Institute Standards of Professional Conduct?
A
No, Yong did not violate any Standards.
B
Yes, Yong violated the Standard relating to loyalty, prudence, and care.
C
Yes, Yong violated the Standard relating to diligence and reasonable basis.
No comments yet.