Question $15$

$4$ pts

Cronkite Walters, CFA, supervises a large group of research analysts. Walters has delegated some of his supervisory responsibilities to his assistant, Amy Reise, who is a CFA candidate. In carrying out her responsibilities, Reise has discovered that the firm's compliance system is inadequate and informed Walters, who has not been very supportive of Reise's efforts to correct the situation. According to the CFA Institute Standards of Professional Conduct, Reise:

must dissociate herself from the firm because the firm is not in compliance with the CFA Institute Standards

should decline in writing to accept supervisofy responsibilities until a reasonable compliance system is adopted.

has satisfied her obligation under the Code and Standards by informing her manager of the situation.

Question $19$

$4$ pts

Sue Ming, CFA, has accumulated several pieces of nonpublic information about Cattle Corp. of Omaha from her contacts within the company. Although none of this information is material by itself, when Ming combines it with her own analysis, it leads her to conclude that Cattle Corp will have an unexpectedly low earnings report for this year. Cattle Corp. has not announced this information, and although Ming has contacted the company, it will not confirm her finding. According to the CFA Institute Standards of Professional Conduct, Ming:

can use the information to make investment recommendations and decisions

cannot legally invest, divest, or make recommendations based on this information

may use the information, but only if her company's compliance officer is able to verify with Cattle Corp. the the material she used was indeed nonmaterial.

Question $20$

$4$ pts