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CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I

A candidate reads an "Application of the Standard" example in the Handbook that involves a character named in the text. Which interpretation of such examples is most accurate?

The examples are hypothetical but factual illustrations with fictional names, and unless stated otherwise the individuals are subject to the Code and Standards. They are not real cases and are not all inclusive, because factual circumstances vary widely and involve gray areas.

  1. AThey illustrate how a standard applies to hypothetical but factual situations, and the individuals are generally subject to the Code and StandardsCorrect
  2. BThey are real disciplinary cases, and the names refer to actual persons
  3. CThey cover every possible circumstance, so no other judgment is needed

Explanation

The Handbook states that examples illustrate how each standard applies to hypothetical but factual situations, that the names are fictional, and that individuals are subject to the Code and Standards unless otherwise stated. The examples are not all inclusive, which rules out the third option.

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