QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

8. For the past decade, Rachel Pederson, CFA, has managed the account of Olga

Stefansson and in that time developed a close relationship with her client.

Stefansson has a beach house in the Bahamas which she offers to Pederson and

her family free use of for two weeks as a reward for the excellent returns

generated in her account. Pederson is so busy at work she does not tell anyone

where she is going for vacation. When accepting Stefansson’s offer, Pederson

least likely violates the CFA Institute Standard relating to:

A. Loyalty to Employer.

B. Disclosure of Conflicts.

C. Independence and Objectivity.