Ethics question #4 from the CFA mock afternoon session

Why is making that large cap investment for a small cap value fund not a violation? I thought it would be a violation of suitability since this investment action isn’t consistent with the stated objectives and constraints of the portfolio.

I had the same rationale. it’s like saying an Emerging Market stock was placed in a Domestic fund since the Emerging Market stock has the same risk and characteristics

You must judge the portfolio as a whole.