- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 1. Ethics and Trust in the Investment Profession
- Subject 4. Ethical vs. Legal Standards
CFA Practice Question
Which statement is true?
B. All legal behaviors are ethical because laws and regulations often codify ethical actions that lead to better outcomes for society or specific groups of stakeholders.
C. Some ethical behaviors may not be legal.
A. The law is always the best mechanism to reduce unethical behavior by market participants.
B. All legal behaviors are ethical because laws and regulations often codify ethical actions that lead to better outcomes for society or specific groups of stakeholders.
C. Some ethical behaviors may not be legal.
Correct Answer: C
B: Some legal behaviors in certain jurisdictions may not considered ethical.
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