) IN STATEMENT 1, CLEANTECH MANAGEMENT MOST LIKELY VIOLATED THE CFA...

2.) In Statement 1, CleanTech management most likely violated the CFA Institute Standards

of Professional Conduct with regard to their comments on:

A. clean technology sector returns.

B. investment analytics software.

C. solar power company investment.

Answer = C

"Guidance for Standards I–VII," CFA Institute Standard V(B): Communication with Clients and Prospective Clients; Standard I(C): Misrepresentation

The performance return claim is a violation of Standard V(B): Communication with

Clients and Prospective Clients, which requires opinion to be separated from fact. In

addition, Standard I(C): Misrepresentation prohibits members and candidates from

guaranteeing clients any specific return on volatile investments. In the case of complex

analyses, such as proprietary investment analytics software used by CleanTech, analysts

must clearly separate fact from statistical conjecture and should identify the known

limitations of an analysis, which has been done.