Which of the following is NOT true about Standard IV (A.2) - Research Reports?
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A. B. C. D.A
Standard IV (A.2) - Research Reports
Standard IV (A.2) - Research Reports is a part of the CFA Institute's Code of Ethics and Standards of Professional Conduct, which sets guidelines for investment professionals in producing research reports. Let's examine each answer choice and determine which one is NOT true about this standard.
A. None of these answers. This answer choice suggests that all the statements provided are true about Standard IV (A.2) - Research Reports. We need to evaluate each statement individually to determine if any of them are false.
B. The analyst must separate fact from statistical conjecture to be in compliance with the standard. This statement is true. According to Standard IV (A.2), analysts are required to distinguish between factual information and statistical conjecture in their research reports. They must present accurate information supported by relevant facts and avoid making speculative or unsupported claims.
C. As long as the analyst has carried out adequate investigation, she can omit from the report certain aspects of the investigations that she deems unimportant. This statement is false. Standard IV (A.2) requires that research reports include all the material information that would be necessary for a client or investor to make an informed decision. Analysts are not allowed to selectively omit aspects of their investigations based on personal judgment. The standard promotes transparency and completeness in research reports.
D. The report must contain a basic description of the characteristics of the investment under consideration. This statement is true. Standard IV (A.2) mandates that research reports provide a fundamental description of the investment being analyzed. This description should cover essential characteristics, such as the investment's risk profile, return potential, and relevant details that assist in understanding its nature.
Considering the above analysis, the answer choice that is NOT true about Standard IV (A.2) - Research Reports is:
C. As long as the analyst has carried out adequate investigation, she can omit from the report certain aspects of the investigations that she deems unimportant.
The standard requires analysts to include all material information and does not permit selective omission of aspects based on the analyst's subjective judgment.
Please note that the information provided here is based on general knowledge of the CFA Institute's Code of Ethics and Standards of Professional Conduct and may not precisely reflect the specific wording or details of the actual exam question from Test Prep.