Explanation:
Under CFA Institute Standard I(C): Misrepresentation, members must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.
Violations identified:
Failure to acknowledge the third-party newsletter (Option B) - When summarizing findings from a third-party newsletter, Mentu must acknowledge this source to avoid misrepresenting the work as her own
Failure to acknowledge the recognized statistical reporting service (Option C) - When using statistics from a recognized reporting service, proper attribution is required to avoid misrepresentation
Key requirements:
Therefore, Mentu violated the Standard relating to misrepresentation by failing to acknowledge both the third-party newsletter and the recognized statistical reporting service as sources in her report.
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Johanna Mentu, CFA, is an analyst at an investment firm. She prepares a research report for clients and adds the forecast of a central bank economist, as well as the latest statistics from a recognized statistical reporting service, to her report. Mentu also adds a summary of the findings of a third-party newsletter. In her final report sent to clients, Mentu only acknowledges the economist as a source for her report.
Did Mentu violate the Standard relating to misrepresentation?
A
No
B
Yes, by failing to acknowledge the third-party newsletter as a source in her report
C
Yes, by failing to acknowledge the recognized statistical reporting service as a source in her report
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