CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

The less reliable a source, the ______ likely the information provided would be considered ______.
A. less, non-public and material
B. less, material
C. more, material
Explanation: The source or relative reliability of the information determines materiality. The less reliable a source, the less likely the information provided would be considered material.

User Contributed Comments 6

User Comment
zed888 why not non-public?
cfamachine It must be that reliability determines materiality but not pulicility. If thats a word.
daverco I don't understand the non-public part. No reference is made to it in the explanation either.
amigosu My guess for the non-public part is that if you heard something from a shaddy source, it's probable that it's not public information.
ashish100 #FakeNews
ChirsMitch I think it's because it isn't stated whether the source is public or nonpublic. It being more or less reliable has no bearing on if it's public or nonpublic, that's a separate issue and isn't affected by the reliability of the information.
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