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Chartered Financial Analyst Level 2

Chartered Financial Analyst Level 2

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62 Karla Dimitrova, CFA, manages the pension plan of Global Railway (GR). GR is conducting a hostile takeover of EE Railway (EE). GR's CEO asks Dimitrova to buy EE shares and vote to support the takeover. Although her own analysis and the consensus of analysts indicate EE stock to be overvalued, she buys shares of EE for the pension fund to demonstrate her loyalty to the GR's CEO. Soon thereafter, EE stock price increases unexpectedly.

Did Dimitrova's actions violate the Standard relating to loyalty, prudence, and care?

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