You will analyze two cases and explain whether the stated conduct is acceptable or unacceptable. Your answer should include the following, 

• Which CFA Standard of Professional Conduct does the case relate to? 

• State the key points of the related Standard in your own words. 

• Explain whether each of A, B, C & D is correct or incorrect separately with respect to the related Standard.

1. Stephen, CFA, is an experienced investment advisor and he works for an investment advisory firm. He is meeting one of the firm’s new clients, Sammie. After chatting with Sammie for a few minutes, Stephen recommends that she buy some Bitcoins in her portfolio because it is the medium of exchange for the future. It has a substantial upside and its recent pullback represents a great buying opportunity. He has also explained in great detail about Bitcoin and other cryptocurrencies. His conduct of recommending Sammie to buy Bitcoins is,

A. acceptable because Stephen is very experienced in investment with CFA designation.

B. acceptable because the investment in Bitcoins could be very profitable to Sammie and therefore it is in her best interest.

C. acceptable because he backs his recommendation with a thorough explanation.

D. unacceptable