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Kay Nunez, CFA, works for an investment firm. Adrian Martinez, a new client of the investment firm, is meeting with Miss Nunez for the first
Kay Nunez, CFA, works for an investment firm. Adrian Martinez, a new client of the investment firm, is meeting with Miss Nunez for the first time. After a short time of speaking, Miss Nunez explains to Adrian that she knows of an undervalued security with considerable potential gains. She recommends that he purchase security for his account. Kay Nunez, CFA has committed a violation of CFA Institute's Standards of Professional Conduct. What should she have done differently?
She should have asked Adrian for reasons for wanting to change investment companies
She should have determined Adrian's needs, objectives, and tolerance for risk before making any investment recommendation.
She should have explained the characteristics of her company to Adrian, including the investment industry, and explained why she is qualified to be Adrian's new investment advisor
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