QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

5. A CFA Candidate, who is an investment bank equity analyst writes a research

report on an oil company recommending a buy. After reviewing the report and

not seeing any disclosures a pension fund manager asks the analyst if the

investment bank is currently undertaking any corporate finance activity with this

oil company. The analyst states that the investment bank is presently not working

with the oil company but has done so in the past. The analyst does not mention or

include in the research report, that she is related to the majority shareholder of the

investment bank and that she owns shares in the oil company. According to the

Standards of Practice Handbook, the analyst is least likely to have violated the

CFA Institute Standards of Professional Conduct that relates to:

A. Disclosure of Conflicts.

B. Independence and Objectivity.

C. Additional Compensation Arrangements.