QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

14. Teresa Avila, CFA is a micro cap investment analyst at a hedge fund. The fund requires

Avila to hold any securities she recommends for the fund in her own account as well.

Because Avila has such a small account, whenever she trades for her own portfolio she

combines the transactions with those of the hedge fund so she is sure to have her account

aligned with the fund. Has Avila most likely violated any CFA Institute Standards of

Professional Conduct?

A. No.

B. Yes, related to Misconduct.

C. Yes, related to Priority of Transactions.