Concept: Standard V(A) - Diligence and Reasonable Basis

CFA Level I Glossary

Standard V(A) requires diligence, thoroughness, and a reasonable basis for investment analysis and recommendations. Relying on external research, including credit ratings, is allowed only with care and independent judgment, not blind acceptance. You must understand the work you use. Exam vignettes often show an analyst rubber-stamping a rating or third-party model without review.

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