Ethics… answer was B) both policies had to be changed, but I assert that C was the write answer: that the first policy was incorrect but the second was consistent with the Standards here is what it was: "2. In their relationship with corporate issuers, analysts are prohibited from either directly or indirectly promising favorable reports, or specific price targets or threatening negative reports. " [CFAI sample test 2, Q5] The explanation to the correct answer is as follows: The Standards also state that research analysts are prohibited from directly or indirectly promising a subject company or other issuer a favorable report or specific price target, or from threatening to change reports, recommendations, or price targets. So, why is the answer B, not C. What was is inconsistent with 2). ???
it says threatining negative reports… this is word for word with cfa guidelines which say you cant threaten to change your report its ticky tack… they could get these points all day from you if they wanted to
ok, so what if I threaten to KEEP an an already negative report which should in good conscience be changed to neutral/positive??
youre gonna have to let this one go… we all got it wrong, there have been many posts about this in the past… but no one has come up with a good reason yet, best we got is that it isnt word for word with the standard
I still sent it to them for confirmation… Still i got 80 and 83 on sample tests 1 and 2. The PM section was way too easy!
thanks for sending… i think you can argue all of these ethics questions really… in my mind i have never been wrong on one of them
Thats the thing…i have a ethics down pat and i’m pretty confident on most questions, including this one! There’s a reason I didn’t become a f***ing lawyer or a compliance person. Jeez Louise!
feel the same way… know all the rules, but will get 50-70 on the day