Question 3 of 3 (LIET-PC0230-1410) Laurindo Brecker has produced a report on the equity market neutral strategy hedge fund sector. As part of his research, he has modeled a simple quantitative contrarian strategy that selects long and short weights of securities based on their recent price performance. Brecker uses daily returns over the last 3 months for his model, a period of very low price volatility and positive market returns. Brecker concludes that equity market neutral hedge funds are a good long-term investment prospect. Brecker is: In violation of Standard V(A): Diligence and Reasonable Basis since he has used simulated performance in his report and not disclosed this fact In violation of Standard V(A): Diligence and Reasonable Basis since he has not conducted a thorough enough analysis before making his recommendation Not in violation of Standard VIA)