CFA Practice Question

There are 356 practice questions for this topic.

CFA Practice Question

Which of the following is not a specific element relating to standard "diligence and reasonable basis"?

I. fiduciary duty
II. maintaining appropriate records
III. avoiding material misrepresentation
IV. diligence and thoroughness in recommendations
Correct Answer: I

User Contributed Comments 7

User Comment
kalps Fiduciary duty does not relate to investments - t is more of a duty as a director etc so you have a fiduciary duty to shareholders again this is noot necessarily to maximise profits but to ensure that they are treated equally and fairly
danlan2 In the note, it's saying "diligence must be exercised to avoid any material misrepresentation".
krisscfa 'Fiduciary duty' belongs to Standard III-A(Loyalty,Prudence, and Care)
danrow I think that there is an overlap between this standard and Standard III A. When you are not exercise prudence and care, you do not apply reasonable basis. Someone who cares about his/her and is prudent would base their decisions on strong analysis.
wundac Fiduciary duty is Loyalty and fairness to C and PC
justbassbaby II-maintain appropriate records should be under record retention, not diligence and reasonable basis
NikolaZ Maintaining appropriate records ensures that you are diligent and reasonable in your decision making. Think of appropriate records as supportive evidence to your research that comprises your diligent and reasonable basis and the question should become clear.
You need to log in first to add your comment.