Which of the following AIMR Standards states that the financial analyst must use reasonable judgment as to the inclusion of relevant factors in research reports?
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A. B. C. D.D
Standard IV (A.2) - Research Reports states: "Members shall use reasonable judgment regarding the inclusion or exclusion of relevant factors in research reports."
The correct answer to the question is A. III (C.2).
In the context of the CFA® Level 1 exam and the AIMR (Association for Investment Management and Research, now known as CFA Institute) Standards, the standard that addresses the requirement for financial analysts to use reasonable judgment regarding the inclusion of relevant factors in research reports is AIMR Standard III (C.2).
AIMR Standard III (C.2) is a part of the "Duties to Clients" section, which outlines the responsibilities of investment professionals to their clients. This standard specifically focuses on the duties of a financial analyst when preparing research reports. The standard states that when formulating recommendations or taking investment actions, the analyst must exercise judgment to include relevant factors and not exclude any relevant information that could reasonably be expected to alter the conclusion or influence the judgment of the intended users of the research report.
Essentially, the standard requires analysts to exercise professional judgment and ensure that their research reports include all relevant factors and information that could impact the investment decision-making process. This helps to ensure that the research reports are objective, comprehensive, and provide a fair representation of the analyst's analysis and conclusions.
Therefore, the correct answer is A. III (C.2) as it specifically addresses the requirement for financial analysts to use reasonable judgment in including relevant factors in research reports.