QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

10. Noor Hussein, CFA, runs a financial advisory business, specializing in retirement planning and

investments. One of her clients asks her to advise the firm’s pension fund trustees on available

investments in the market including Islamic products. On the day prior to the meeting, Hussein

spends an hour familiarizing herself with Islamic investment products and getting updates on

local market conditions. The next day she recommends Islamic investment products to the

trustees based on her research and her expertise in retirement planning and investments. The

trustees subsequently incorporate Islamic products into their investment allocation. Did

Hussein’s basis for the recommendation most likely comply with the CFA Code of Ethics?

A. Yes.

B. No, with regard to Misconduct.

C. No, with regard to Diligence and Reasonable Basis.