CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Cam Bourque, CFA, is a sell-side analyst. Approximately half of Bourque's compensation comes from his firm's investment-banking division. Bourque is asked to write a report about Anacortes Concrete (AC), an investment-banking client. Despite his concerns about a slowdown in concrete demand, Bourque issues a very positive report on AC. When issuing his report, Bourque least likely violates the CFA Institute Standard relating to ______.
A. Disclosure of Conflicts
B. Loyalty to Employer
C. Loyalty, Prudence, and Care
Explanation: The standards require members to put client interests ahead of member and employer interests. Because Bourque's compensation is dependent upon investment banking revenues, Bourque may not be objective. When issuing the report, he is in jeopardy of violating standards relating to Independence and Objectivity and Loyalty, Prudence, and Care, as well as Disclosure of Conflicts.

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