13. Lilibet is a portfolio manager with Royal Investments. Her client Diana has offered her a bonus if her portfolio achieves a return higher than the market. Lilibet does not inform her firm about the arrangement because she believes that she can tell her employer if she is able to achieve the target. Which of the following CFA Institute Standards of Professional Conduct are likely violated? I. VI(A): Disclosure of conflicts II. IV(B): Additional compensation arrangements III. IV(A): Loyalty IV. II(A): Market manipulation (a) I and II (b) I, II, III and IV (c) II and III (d) I, II and III (e) II, III and IV 14. Jesse writes a detailed investment report on Click 'n Pay based a study of its financial statements, and several broker research reports. Which one of the following CFA Standards of Professional Conduct are relevant to this scenario? a) I(C): Misrepresentation. b) (B): Independence and Objectivity. c) V(A): Diligence and Reasonable Basis. d) a) and c) e) All of the above are relevant 15. Stefanos is head of the research department of French Securities and has supervisory responsibility over Novak. Following extensive research, Stefanos has decided to change his recommendation for Best Sports Solutions from a sell to a buy. Prior to sending his report on Best Sports Solutions to his colleagues, Stefanos tells Novak about the changed recommendation. Novak proceeds to inform certain institutional customers of the changed recommendation before it is disseminated to all the clients of French Securities. Which of the following statements isfare) CORRECT regarding the CFA Standards of Professional Conduct? a) Stefanos has violated IV(C): Responsibilities of supervisors. b) Novak has violated Ill(B): Fair dealing. c) Stefanos has violated II(A): Material non-public information. d) Both a) and b) are correct