CFA Practice Question

There are 291 practice questions for this study session.

CFA Practice Question

Tristian Martinez writes a report on LKJ Corp., which provides services to oil firms. Based on forecasts of GDP of economies around the world and growth of world trade, he estimates that demand for oil will increase by 4% the coming year. In his research report he writes 'Based on the fact that demand for oil will grow at 4% the coming year, I expect LKJ Corp. will receive many new orders and its profits will continue growing.'

A. Martinez has violated the requirements for communication with prospective clients.
B. Martinez has violated the requirements for diligence and reasonable basis.
C. Martinez has not committed any violation.
Correct Answer: A

Martinez needs to distinguish between fact and opinion. Demand for oil growing at 4% is not fact.

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