hard · CFA Level I ethics
Lumen Credit uses a third-party quantitative model to select stocks for its 'Growth Composite.' The model's creator recently changed a key volatility assumption, which Elena, the portfolio manager, disagrees with. However, because the model has performed well historically, she continues to use it without mentioning the change to her clients.
Which Standard is Elena most likely violating?
- Standard V(B) Communication with Clients and Prospective Clients.
- Standard I(C) Misrepresentation regarding plagiarism.
- Standard I(B) Independence and Objectivity.
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