Answer-first summary for fast verification
Answer: by both trespassing and relying on her colleague's due diligence.
## Explanation **CFA Standards Analysis:** **Violation 1 - Due Diligence (Standard V(A)):** - Relying solely on colleague's due diligence violates Standard V(A) - Diligence and Reasonable Basis - Investment professionals must exercise diligence and have reasonable basis for recommendations - Cannot delegate due diligence responsibility entirely **Violation 2 - Misconduct (Standard I(D)):** - Trespassing and arrest constitutes misconduct under Standard I(D) - Any act involving dishonesty, fraud, or deceit that reflects adversely on professional reputation - Even nonviolent protest involving illegal trespass reflects poorly on professional standing **Both actions violate CFA Standards:** - Due diligence failure violates professional competence standards - Illegal activity violates misconduct standards - Neither violation is excused by environmental activism motives
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38 Amanda Jones, CFA, is a portfolio manager for a fund dedicated to socially responsible investing. She is also an environmental activist. Jones relies solely on her colleague's due diligence, without doing her own due diligence, to understand the risks of an ESG bond before recommending an investment in the bond. Jones later participates in a nonviolent protest. She trespasses on the property of a petroleum producer accused of damaging the environment and is arrested.
Jones violates the Standard relating to misconduct:
A
only by trespassing and being arrested.
B
only by relying on her colleague's due diligence to understand the risks of an ESG bond.
C
by both trespassing and relying on her colleague's due diligence.
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