Question #7 CFAI Ethics

Hello,

I am confused by question 7 on the CFA ethics section. I chose the answer to be A, he did not distinguish between fact and opinion.

In the answer section, they said that while this answer (A) may be correct, “the question does not illustrate a violation of that nature”.

It seems to me there was some arbitrary analysis (without any real reason) that the answer should be B instead of answer A.

If anyone is looking at the CFAI text, could help me out with this question?

Thank you!

So there is a major issue which is that all his research work led him to conclude that it’s a weak hold. However, because he overhears a highly respected analyst issue his opinion about company X, he decided to dump all the work he has done just to go with the Analyst opinion. If in actual fact he did that, how will he be able to defend his strong buy recommendation? So B is a better option in this instance.

Read up *communication with client and prospective client - distinction between facts and opinions in reports* from the curriculum to have a deeper understanding.