🎓CFA Final Prep All Topics

Standard V — Investment Analysis, Recomm

Card1 / 33
Question

Why does issuing a recommendation without independent research violate Standard V(A)?

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Answer

It lacks adequate diligence and a reasonable basis.

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Question

In Standard V(A), what makes a research basis "reasonable" before making a recommendation?

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Answer

Adequate investigation, analysis, and support for the conclusion.

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Question

Why is using an anonymous model without understanding it a Standard V(A) violation?

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Answer

You lack a reasonable basis for using its outputs.

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Question

What must an analyst understand about a third-party model to satisfy Standard V(A)?

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Answer

Its methodology, assumptions, limitations, and data inputs.

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