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Basic Question 4 of 8
Tristian Martinez writes a report on LKJ Corp., which provides services to oil firms. Based on forecasts of GDP of economies around the world and growth of world trade, he estimates that demand for oil will increase by 4% the coming year. In his research report he writes 'Based on the fact that demand for oil will grow at 4% the coming year, I expect LKJ Corp. will receive many new orders and its profits will continue growing.'
B. Martinez has violated the requirements for diligence and reasonable basis.
C. Martinez has not committed any violation.
A. Martinez has violated the requirements for communication with prospective clients.
B. Martinez has violated the requirements for diligence and reasonable basis.
C. Martinez has not committed any violation.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct;
explain how the practices, policies, and conduct do or do not violate the CFA Institute Code of Ethics and Standards of Professional Conduct.
CFA® 2025 Level II Curriculum, Volume 6, Module 45.