John, a portfolio manager for an investment advisory firm, is planning to sell a portion of his portfolio. He wants to sell his holdings in XYZ stock, but his firm recently upgraded the stock to "strong buy." Will he violate the Code and Standards if he sells the stock, and why?

b. Mary works for a regional brokerage firm. She estimates that ABC firm will increase its dividends next year but this increase is contingent on pending legislation. The legislator from her district told her that he is making efforts to pass the legislation but some members of legislative body are not so willing. The company hasn't made any announcements about a change in dividend policy. Mary write in her report: "We expect ABC stock price to rise by at least $10 by the end of the year because of the dividend increase. Investors buying the stock now should expect to realize a total return of at least 15% on the stock." Did Mary violate the Code and Standards in this report, and why?

c. Andy is an analyst at Fargo brokerage and investment banking firm that works with Moorhead Inc. Andy is writing a research report on Moorhead Inc. Two of the Fargo's senior managers are directors at Moorhead's subsidiaries. Should Andy write a research report on Moorhead? If no, why, and yes, how can he make sure that his actions comply with the Code and Standards.

d. Louis Perkowski manages a high-income mutual fund. He purchases zero-dividend stock in a financial services company because he believes the stock is undervalued and is in a potential growth industry, which makes it an attractive investment. Is Louis violating the CFA Code of Ethics and Standards of Conduct, and why?

e. Caleb Smith, an investment adviser, has two clients: Larry Robertson, 60 years old, and Gabriel Lanai, 40 years old. Both clients earn roughly the same salary, but Robertson has a much higher risk tolerance because he has a large asset base. Robertson is willing to invest part of his assets very aggressively; Lanai wants only to achieve a steady rate of return with low volatility to pay for his children's education. Smith recommends investing 20% of both portfolios in zero-yield, small-cap, high-technology equity issues. Is Caleb violating the CFA Code of Ethics and Standards of Conduct, and why?