Question 3 Ethics [Total 10 Marks]

a) Assume we are now in mid-February 2022. After conducting your own analysis, you have

made a decision to buy shares of CSGP in March. However, your friend, Jaden who is a

financial advisor for CSGP tells you that CSGP's earnings for the fourth quarter 2021 is

higher than the analyst estimates. He suggests you to buy its shares immediately (i.e. in mid

February 2022) before this information is announced to the public (and price increases).

Please state and explain which CFA Institute Code and Standards Jaden has breached.

(6 marks)

b) After getting this information from Jaden, you refuse to take a position in the stock today and

decide to continue to wait until March to buy it. What is the best terminology to describe your

behaviour? Please use the best behavioural terminologies covered in the lectures and also

explain your answers. (4 marks)