- CFA Exams
- CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 3. Guidance for Standards I-VII
- Subject 9. Standard III (C) Suitability
CFA Practice Question
Rachael Hirshliefer, CFA manages accounts for various clients with differing demographics and risk tolerances. Her firm purchases third party research and she follows up the recommendations with her own analysis. After she reaches a decision to buy or sell a particular asset, she does the same trades for all her clients. Has Hirshliefer likely violated the Standards?
A. No
B. Yes; Priority of Transactions
C. Yes; Suitability
Explanation: Clients may have differing risk-return objectives.
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