CFA Practice Question

There are 361 practice questions for this study session.

Clifford Brown is a partner in a money management firm. Brown recently attended a seminar where he learned about a quantitative model presented by Art Dixon. Upon returning to his office, Brown began testing the model and making a few minor alterations to it. He showed his model to his partners, who were impressed and decided to promote the model as proof of the money management firm's continuing innovation and value added. In the next newsletter mailed by the firm, Brown included a discussion of the model, the results of tests of the model, and financial data on several stocks selected by the model. The factual corporate financial data was taken from a Standard & Poor's publication. According to the CFA Institute's Standards of Professional Conduct, which of the following actions is Brown required to take?

A. Brown must credit both Dixon for having developed the original model and Standard & Poor's as the source of the data.
B. Brown must credit Dixon for having developed the original model, but he need not credit Standard & Poor's as the source of the data.
C. Brown must credit Standard & Poor's as the source of the data, but he need not credit Dixon for having developed the original model.
Correct Answer: B

User Contributed Comments 8

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AshVini

b is right because standard & poor's is one of the recognized financial and statistical reporting services and so brown need not credit std & poor's as the source of the data.

ashok1959

I agree with Ashvini.

Tukker

Data like historical stock prices can be found anywhere (Bloomberg, Yahoo, S&P, etc,...). The are just fact no one can claim intellectual ownership for. However if you directly copy some charts into your reports from e.g. Bloomberg, it would be professional to mention the source.

Raok

A is also right because it doesn't hurt to also credit s&p as a source

jorgeman81

A is not correct because though it doesn't hurt to credit s&p as a source this is not required and the questions clearly asks for actions required

Inaganti6

@raok haha i like how you choose which answer *should* be right. If the world worked like that what's the point of even studying for the CFA. Just add the designation to your name because you know what PE Ratios are and what capital flight is and what a balance sheet looks like. lol.

gerdvar

Wasn't he supposed to ask Dixon for permission to use the model? Specially since he only modified it SLIGHTLY

Inaganti6

*sigH* some people. @ RAOK. IT SAYS MUST. Crediting statistical and factual reporting services that are well-known is NOT A MUST.