Penny is the portfolio manager of a large company stock mutual fund. A friend at another investment firm made her aware of a small company whose prospects for future growth and earnings are outstanding. Penny invests in the small-cap company on behalf of the mutual fund, and the stellar performance of the small-cap stock boosts her funds return to a level well above the benchmark for large-cap funds.

		Penny has violated the Standards because her investment in the small-cap stock is different than the stated objective of the fund.
		Penny violated the Standards because she became aware of the stellar investment opportunity from someone at a different firm, therefore using confidential information.
		Penny has not violated the Standards because her investment was an equity investment which is the type of investment her fund is designed to invest in.