NORMAN BOSNO, CFA, ACTS AS AN OUTSIDE PORTFOLIO MANAGER TO A SOVERE...

6. Norman Bosno, CFA, acts as an outside portfolio manager to a sovereign wealth fund. Raphael

Palmeti, a fund official, approaches Bosno to interest him in investing in Starlite Construction

Company. He tells Bosno that if he approves a $2 million investment in Starlite by the fund, Bosno

will receive a "bonus" that will make him wealthy. Palmeti also adds that if Bosno decides not to

invest, he will lose the fund account. After doing a quick and simple analysis, Bosno determines the

investment is too risky for the fund. If Bosno agrees to make the investment, which of the Standards

of Professional Conduct is least likely to be violated?

A. Additional Compensation Arrangements

B. Diligence and Reasonable Basis

C. Loyalty, Prudence, and Care