Ethics Question on Mock

Can someone help me understand this? I answered No, with regards to timing of her updated research report. wouldnt it be av iolation for her to disclose her sell rating prior to official publication of her report?

Statement 2. Although my report on UniFlash issued last quarter reflected a neutral rating, after meeting with management yesterday, I now believe a sell rating is more appropriate. I am finalizing an updated research report for UniFlash that I will release tomorrow.


Does LeCompte’s second statement during her TV appearance most likely meet the CFA Institute Research Objectivity Standards recommendations? No, with regards to the timing of her updated research report No, with regards to her inconsistent recommendations Yes 0 out of 1 Incorrect. The recommended procedures for compliance with the Research Objectivity Requirement 11, Rating System, states that firms should prohibit covered employees from communicating a rating or recommendation different from the current published rating or recommendation.


i feel like i am finding a few errors on the mock exams. anyone else seeing this? i.e. Mock exam PM (1st mock, not march) a question on guideline transactions method where the question references as ‘guideline transactions method (GPCM)’ which HAS to be an error, but problem is that the statement is probably correct as GTM and incorrect as GPCM!!! Am i missing something??

Statement 1—Raman: Because PRBI’s management is actively seeking opportunities to be acquired, the guideline transactions method (GPCM) would be most appropriate. It establishes a value estimate based on pricing multiples derived from the acquisition of control of entire public or private companies. Specifically, it uses a multiple that relates to the sale of entire companies

Communication can occur via many different means, not just written reports. It’s not a issue disclosing her rating, but the incosistency certainly is.

Ah now I get it. Thanks!