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Answer: trespasses while protesting a company accused of environmental damage and is arrested., relies solely on another member's due diligence to understand risks of an investment before making an investment recommendation.
## Explanation **CFA Standard I(D) - Misconduct Analysis:** **Option A**: Personal bankruptcy due to medical expenses - **Does NOT violate** misconduct standard as this is typically considered a personal financial matter, not professional misconduct **Option B**: Trespassing and arrest - **VIOLATES** misconduct standard. Any act involving dishonesty, fraud, or deceit that reflects adversely on professional reputation constitutes misconduct **Option C**: Relying solely on another's due diligence - **VIOLATES** Standard V(A) - Diligence and Reasonable Basis. Investment professionals must exercise diligence and have reasonable basis for recommendations **Key Violations:** - Option B: Reflects poorly on professional reputation - Option C: Failure to conduct proper due diligence - Option A: Personal financial hardship generally not considered misconduct
Author: LeetQuiz Editorial Team
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37 Which of the following actions violates the Standard relating to misconduct? A portfolio manager who is a member:
A
declares personal bankruptcy due to medical expenses.
B
trespasses while protesting a company accused of environmental damage and is arrested.
C
relies solely on another member's due diligence to understand risks of an investment before making an investment recommendation.
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