QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

12. Mailaka Securities (MS) advertises the use of a “bottom up” investment style in its marketing

material. Recently, MS senior management decided to switch to a “top down” approach, citing

the fact that it is less labor intensive. All other aspects of the research process are to remain the

same. The head of research at MS, Mara Cherogony, CFA, is instructed to supervise the

implementation of the new procedures, notify clients of the changes, and revise the text of

marketing materials when new material is produced. Which of the following CFA Standards

pertaining to Investment Analysis, Recommendations and Actions is Cherogony least likely in

danger of violating?

A. Supervisory Responsibility.

B. Communication with Clients.

C. Diligence and Reasonable Basis.

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