QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

13. Sallie Lewis, CFA, is a research analyst covering the mining industry. Along

with other analysts, Lewis visits the primary mine of Gold Rush Mines (GR).

During the visit, a major piece of equipment fails and Lewis overhears an

unidentified employee state that production will be stalled for six months. Lewis

immediately files a sell recommendation on GR without any additional research.

Has Lewis violated any CFA Institute Standards?

A. No.

B. Yes, with respect to diligence and reasonable basis.

C. Yes, with respect to material nonpublic information.