QUESTION 16 Perkowski manages a high-income mutual fund. He purchases zero-dividend penny stock in a biomedical research company because he believes the stock is undervalued and is in a potential growth industry, which makes it an attractive investment. According to CFA Standard Ill (Perkowski's investment is a. appropriate if he exercised diligence and thoroughness and has a reasonable and adequate basis for the investment b. inappropriate because the investment does not meet the mandate of the fund, c. inappropriate because penny stock in a biomedical research company stock is an unduly risky investment for the fund