CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Which of the following would be considered "material"?

I. an assumption based on speculation by a competitor about a significant new contract for a company
II. factual information from a corporate insider regarding a significant new contract for a company
Correct Answer: II

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 7

User Comment
CFA19 reliable and sig. info.
Masterkang FACTUAL
TammTamm Factual was the key word.
papal factual makes it reliable
gaurabhscx assumption can be anything so assumption is irrelivnt so it makes assumption the key word
dblueroom no gaurabhscx, it's not the assumption, it is the "competitor" that is the key word. because the source of info is not as reliable if it were an expert following that particular industry.
raffrobb Factual and corporate insider makes it material and influential on decision.
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