I just made a mock exam with this both problems in it, and the correct answers contradict each other, what do you think?
Rafael Stuart is a research analyst at Grand Investment Associates (GIA), a U.S.
based financial advisory firm that targets private wealth clients. Stuart, along with
a group of research analysts at GIA, is preparing a report on Tetragonal
Corporation (TETCO), a large-cap technology firm. Based on a comprehensive
analysis of the firm’s pro forma financial statements, Stuart reached the
conclusion that TETCO’s next quarter’s EPS would be at least 5% lower than
consensus. Stuart’s research team, however, disagrees, and publishes the report
including a ‘buy’ recommendation. To be in compliance with CFA Institute Standards of Professional Conduct, Stuart
should most likely:
A. remove his name from the report before it is published.
Frank Liew is a research analyst who is working with a team of analysts to
produce a report on a large, multinational firm. Each member performs an
independent analysis of the firm based on comprehensive data about the firm’s
financials and its competitor strategies. However, after developing his
recommendation, Liew discovers that the consensus opinion differs significantly.
The report is published with Liew’s name included in the list of analysts.
By opting not to dissociate from the report, Liew has most likely:
A. not violated any Standards.
~ The best is yet come ~