4.) To be in compliance with the CFA Institute Standards of Professional Conduct,
CleanTech should most likely question the validity of Slar's research on EnergyAlgae for
deficiencies in which of the following areas?
A. Earnings projections
B. Operational analysis
C. Annual research update
Answer = C
"Guidance for Standards I–VII," CFA Institute
Standard V(A): Diligence and Reasonable Basis
A reasonable and diligent effort was not made when the analysis on EnergyAlgae was
updated on only an annual basis because the information on the company could change
materially in such a high-risk industry, a violation of Standard V(A): Diligence and
Reasonable Basis. In addition, when the company reports financial results on a
semiannual basis, an annual update to a research report would not be timely.
Bạn đang xem 4. - CFA MOCK EXAM LEVEL III MOCK EXAM VERSIONB ANSWERS 2014
