Question 3: Employment Issues

2 points

Jimmy Carter, CFA, is a portfolio manager at ABC Securities. Carter has reasonable grounds to believe his colleague, Sandra Bullock, a CFA level II candidate, is engaged in unethical trading activities that may also violate local securities laws. Carter is not Bullock's supervisor, and her activities do not impact Carter or any of the portfolios he is responsible for. Based on the Code and Standards, the recommended course of action is for Carter to...

(only one possible answer)

take no action because he is not directly involved.

report Sandra Bullock to ABC's trading supervisor or compliance department. report Sandra Bullock to the appropriate governmental or regulatory organization.

None of the above

Question 5: Client Responsibility

2 points

Jim Tang, CFA, is a sell-side investment analyst. While at a software industry conference, Tang hears rumors that Blue Run Software may have falsified its financial results. When he returns to her office, Jim conducts a thorough analysis of Blue Run. Based on her research, including discussions with some of Blue Run's customers, Tang is convinced that Blue Run's reported 50% increase in net income during recent quarters is completely fictitious. So far, however, Tang is the only analyst suspicious about Blue Run's reported earnings. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, the least appropriate action for Tang is to...

(only one possible answer)

Report her suspicions to Blue Run

Do nothing until other analysts support her analysis. Recommend that her clients sell their Blue Run shares immediately.

None of the above.

please solve this with in 1 hour