Question: Q . Stella Murphy, CFA, a portfolio manager, meets with a client who is concerned about a security recently added to the portfolio. Murphy reviews

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Stella Murphy, CFA, a portfolio manager, meets with a client who is concerned about a security recently added to the portfolio. Murphy reviews with the client the decision for buying the security and the risks associated with the company and stock. The following week, the company announces it is buying a company in a non

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related industry and the stock falls sharply. The client accuses Murphy of not disclosing all the risks associated with holding the security. Murphy explains the company's acquisition was unexpected and not factored into the forecast. Has Murphy most likely violated the Standards? A

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No B

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Yes, the Standard relating to communication with clients C

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Yes, the Standard relating to diligence and reasonable basis

Q . Stella Murphy, CFA, a portfolio manager,

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