Lourdes Conti, CFA, is a portfolio manager at a global investment bank, which has

an approved vendor for international equity research service. Since Conti is

looking at an investment in a country where the capital market is very unique in

terms of structure and regulations, she has reason to question the validity of the

research conducted by the approved vendor. Hence, she has done her own due

diligence and found a local research firm that knows the market well. Did she

violate Standard V (A) if she uses the approved vendor, instead of the local

research firm?

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A) Yes, because she should not rely on the research when she has reasonable doubt in its

validity.

B) No, because she needs to comply with the company policies.

C) No, because she should trust the due diligence done by the company on the approved

vendor.