- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 3. Guidance for Standards I-VII
- Subject 5. Standard II (A) Material Nonpublic Information
CFA Practice Question
The "mosaic theory" holds that ______
B. an analyst should use all available and relevant information in support of an investment recommendation.
C. an analyst should distinguish between facts and opinions in research reports.
A. an analyst can use material public information or nonmaterial nonpublic information in his analysis.
B. an analyst should use all available and relevant information in support of an investment recommendation.
C. an analyst should distinguish between facts and opinions in research reports.
Correct Answer: A
User Contributed Comments 13
User | Comment |
---|---|
kalps | read the answers properly next time |
Mavizo | I know exactly what you mean!!! Just did the same mistake!! |
Ioannis | Made exactly the same mistake. |
ggupta | Same as above. This is tricky |
epiziL2 | Mosaic Theory:Remember that Material-public Non material-non publc Non material-Public |
mrushdi | GOOD QUESTION ,SAME MISTAKE |
Gleeder | Looks like the key is distinguishing between "can" vs. "should" in the answer choices. |
bantoo | same mistake! duds |
kahh | The best thing is to read the question and/or choices 3 times to fully understand them to note subtle changes in fact. |
gill15 | Im still missing something. I thought you can only use non-material non public information when used in conjunction with material public information? You cant use one or the other. Or is the question solely about the wording. That both are an option when mosaic is used? |
gulfa99 | yep same mistake, we all are in a rush to finish 120 questions in 3 hours...:) |
raffrobb | Yahoo got it right...almost picked B |
Inaganti6 | HAHA I GOT IT RIGHT AND YOU ALL GOT IT WRONG AHAHA. HAHAHA.HAHAHAHAHAH |