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esos trom CFA Standards of Practice Handbook 1. Which of the following is most likely to be consider ed a material piece of information regarding

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esos trom CFA Standards of Practice Handbook 1. Which of the following is most likely to be consider ed a "material" piece of information regarding company? A. A competitor's CEO speculation of a pending management change at the company B. A former CFO of the company predicting long-term decline in the company's stock. C. The loss of a customer representing a significant portion of a company's gross sales. 2. Which of the following is not considered "public" information? A Sales predictions made by the company president to a group of analysts during a tour of comp facilities. B. An earnings report posted on the company's website. C. An announcement of a new product in a press release. 3. Powell is a research analyst with Rossington and Collin (R&C), a brokerage and investment bar R&C's mergers and acquisitions department has represented Wilkenson Company in all its inves banking deals. Two of R&C's senior officers are directors of several Wilkenson subsidiaries. Pow asked to write a research report on Wilkenson. What is Powell's best course of action? A. Powell can write the report if she discloses in the report the officer's special relationships wit company and the fact that R&C has served as Wilkenson's investment banker. B. Powell can write a factual report but must refrain from expressing any opinions because of t relationship between the two companies. C. Powell should not write the report because the officers are "constructive insiders." 4. Waters is an investment analyst who has accumulated and analyzed several pieces of nonp information through her contacts with drug firms. Although none of the information is "mater correctly concluded that the earnings of one of the drug firms would be unexpectedly high in year. According to the CFA Institute Standards of Professional Conduct, Waters: A. should urge the drug firm to publicly disseminate the information immediately. B. should publish the information before she uses it in her investment recommendations and

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