Question: You will analyze two cases and explain whether the stated conduct is acceptable or unacceptable. Your answer should include the following, Which CFA Standard

You will analyze two cases and explain whether the stated conduct is acceptable or unacceptable. Your answer should include the following,

• Which CFA Standard of Professional Conduct does the case relate to?

• State the key points of the related Standard in your own words.

• Explain whether each of A, B, C & D is correct or incorrect separately with respect to the related Standard.

1. Stephen, CFA, is an experienced investment advisor and he works for an investment advisory firm. He is meeting one of the firm’s new clients, Sammie. After chatting with Sammie for a few minutes, Stephen recommends that she buy some Bitcoins in her portfolio because it is the medium of exchange for the future. It has a substantial upside and its recent pullback represents a great buying opportunity. He has also explained in great detail about Bitcoin and other cryptocurrencies. His conduct of recommending Sammie to buy Bitcoins is,

A. acceptable because Stephen is very experienced in investment with CFA designation.

B. acceptable because the investment in Bitcoins could be very profitable to Sammie and therefore it is in her best interest.

C. acceptable because he backs his recommendation with a thorough explanation.

D. unacceptable

Step by Step Solution

★★★★★

3.33 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided below The case relates to the CFA Standard of Professional Conduct specifically to the followin... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Banking Questions!

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

You will analyze two cases and explain whether the stated conduct is acceptable or unacceptable. Your answer should include the following, Which CFA Standard of Professional Conduct does the case...

For the two cases below, explain whether the relevant model is a classification or a regression problem. Indicate whether the focal interest would be in inference or prediction. Provide n and p . You...

I need some help with both Case 1 and Case 2 of this assignment. See attached document for full assignment. Here is an excerpt from each. Case 1: Purchase Point Media Corporation (PPMC) Media...

human resources management Workplace Harassment Explore and discuss this concept within the Canadian context (use multiple sources to explain the full extent of the concept). Identify and interview...

1) (18 pts.) (i) Consider the following variation of the 0/1 Knapsack problem: Given are a knapsack of capacity W and n items, with each item having a profit pi, a weight w, and a type ti, 1 SiSn....

The file contains two Python lists, each containing 21 values. These lists contain data about year-on-year changes in two statistics. The list visits holds data about changes in visits to the UK by...

The data science team at Swift Investments uses a sample of 16 loans to build a decision tree that predicts whether a loan will repay or default. Although the data science team is very familiar with...

Explain why the implementation of total quality requires cultural change.

What must be consistenly performed when using a bar heat scaler

Jenny Anderson January 03, 2017 In a bid to restore some semblance of work-life balance, French companies with more than 50 employees are now required to guarantee workers the right to disconnect...

1. What are the 2 or 3 types of departmentalization? Explain why. 2. Explain what are the problems faced with the company regard to downsizing and restructuring? 3. What could Volkswagen do to...

At JQK, inc there are five jobs awaiting processing. Each of these jobs must first be processed on WC1 before being processed on WC2. once a job is starred on WC1, it must be completed before being...

Discuss why you believe a sensitivity analysis is required in this case or for a similar business problem where an optimal solution to linear programming formulation is desirable. In addition, would...

Which of the following can define motivation?The ability to perform well at workHaving adequate resources and supportThe intention of achieving a goal, leading to a goal-directed behaviorHaving the...

Describe the relationship between sustainability reporting and sustainability management accounting.

A large state university requires each college to submit an annual report that includes the average salary of teaching faculty by rank, by rank and gender, and by rank, gender and racial diversity....

Use the information from Exercise 14.18. The production variable cost ($40,000) includes $25,000 in direct materials and $15,000 in direct labor. REQUIRED A. Using the throughput costing method: (1)...

=+b. What type of variation is measured by calculating the sample standard deviation, s, of the six measurements?

=+its operating range of 250F to 150F. What is the maximum absolute error you would expect in a measured reading of 70F from this thermometer?

=+30. Consult a published reference, weather bureau, or Internet site to determine the operational definition used by weather forecasters when making statements like There will be a 30% chance of...