1.Gail Stefano, CFA, an analyst for a U.S. brokerage firm that serves U.S. investors, researches public utilities in South American emerging markets. Stefano makes the following statement in a recent report: Based on the fact that the South American utilities sector has seen rapid growth in new service orders, we expect that most companies in the sector will be able to convert the revenue increases into significant profits. We also believe the trend will continue for the next three to five years. The report goes on to describe the major risks of investing in this market, in particular the political and exchange rate instability associated with South American countries. Stefanos report:

A.Has not violated the Code and Standards.

B.Violated the Code and Standards by failing to properly distinguish factual information from opinions.

C.Violated the Code and Standards by failing to properly identify details related to the operations of South American utilities.