medium · CFA Level I ethics

At Westfork Bancorp, a junior analyst is asked by her supervisor to 'find a way' to make a valuation model yield a $100 target price for Harbourlight REIT, as this matches the firm's banking mandate targets. The analyst believes the fair value is $80 but adjusts the terminal growth rate assumption until the model shows $100.

This behavior most clearly violates which of the following?

  1. Standard I(B) Independence and Objectivity.
  2. Standard V(C) Record Retention.
  3. Standard III(A) Loyalty, Prudence, and Care.

Sign up free to see the explanation and track your rank →

More CFA Level I ethics practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 83,400+ practice questions, 28,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials