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NEW QUESTION: 1
Benny Len is an analyst at a large Brokerage house. Benny has recently done a study analyzing two years of historical information on the returns of stocks with high PE ratios. Benny concludes that these high PE stocks generate low returns and reports that these stocks should be sold from all client portfolios.
According to CFA Institute's Standards of Professional Conduct, which Standard of Professional Conduct has been violated?
A. Standard I Professionalism (B: Independence and objectivity).
B. Standard V Investment Analysis, Recommendations, and Action (A: Diligence and Reasonable Basis)
C. Standard III Duties to Clients (B: Loyalty, Prudence and Care).
Answer: B
Explanation:
Standard V(A) - Diligence and Reasonable Basis - has been violated since Benny's conclusion is not supported by sufficient historical data. It should have been based on a more detailed historical review. Two years is NOT sufficient time to be able to generate such an opinion.
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D. Agents could be logged in to 20 splits maximum.
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Explanation: Reference Avaya Aura Call Center 6.0 Overview Page 18
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