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Jennifer Johnson works on a buy-side trading desk of an investment management firm and concentrates on in-house trades for a hedge fund subsidiary managed by

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Jennifer Johnson works on a buy-side trading desk of an investment management firm and concentrates on in-house trades for a hedge fund subsidiary managed by a team at an investment management firm, Source Capital Investment Inc. The hedge fund has achieved several successes and is marketed globally by Source Capital Investment Inc. Based on her vast experience as the trader for most of the activity of the fund, Johnson has become quite knowledgeable about the hedge fund's strategy, tactics, and performance. When the COVID-19 pandemic breaks during the first quarter of 2020, the market was badly affected and many of the securities involved in the hedge fund's strategy decline substantially in value. Johnson observes that the reported performance of the hedge fund does not reflect this decline. In her experience, the lack of effect is an unlikely occurrence. She approaches the Head of Trading about her concern and is told that she should not ask any questions. Moreover, the fund is big and successful and is not of her concern. She senses that something is not right, so she contacts the compliance officer, who also tells her to stay away from the issue of the hedge fund's reporting. Required: Based on the above scenario, comment and discuss on Johnson professional conduct and the appropriate actions that she should take by applying the CFA Standards of Practice Handbook

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