A research analyst covering a company has collected and analyzed a lot of information that suggests the company's stock should be rated a weak "hold" because the demand for the firms new products is poor. During a conversation with other analysts, he learns of takeover rumors regarding the company. The analyst immediately upgrades his recommendation to "buy" based on this new information. The analyst:

violated the CFA Institute Standards of Professional Conduct by failing to distinguish between facts and opinions in his recommendation.

violated the CFA Institute Standards of Professional Conduct because he did not seek approval of the change from his firm's compliance department.

violated the CFA Institute Standards of Professional Conduct because he did not have a reasonable and adequate basis for his recommendation.