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Chartered Financial Analyst Level 1

Chartered Financial Analyst Level 1

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Stella Murphy, CFA, a portfolio manager, meets with a client concerned about a security recently added to the portfolio. Murphy reviews the investment rationale and associated risks with the client. Subsequently, the company announces an unexpected acquisition in an unrelated industry, causing the stock to decline sharply. The client accuses Murphy of inadequate risk disclosure. Murphy explains the acquisition was unforeseen and not part of the initial analysis. Did Murphy likely violate any CFA Institute Standards?

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