QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

12-24 months. To preserve her client’s wealth, the manager sells small-cap

equities that she considers most vulnerable to price declines. After considerable

research, the manager buys large-cap equities that she believes are better

positioned to weather the expected economic downturn. The manager provides

complete disclosure of these trades to her clients after the purchase. Has the

manager violated any CFA Institute Standards of Professional Conduct?

A. No.

B. Yes, relating to suitability.

C. Yes, relating to misconduct.