QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

2. Alexandra Zagoreos, CFA, is the head of a government pension plan. Whenever Zagoreos hires a

money management firm to work with the pension plan, she finalizes the deal over dinner at a

nice restaurant. At these meals, Zagoreos also arranges for the money manager to provide her

payments equal to 10% of the management fee the manager receives from the pension plan.

Zagoreos keeps half of the payments for her own use and distributes the remainder as cash

incentives to a handful of her most trusted staff. Zagoreos least likely violated which of the

following CFA Institute Code of Ethics and Standards of Professional Conduct?

A. Referral fees.

B. Loyalty, Prudence and Care.

C. Additional Compensation Arrangements.