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CFA Level I · CFA Level I Exam · Guidance for Standard V: Investment Analysis, Recommendations, and Actions

A research team's model output supports a group buy recommendation. Team member Aisha Rahman reviewed the model's input parameters and outputs during the process, and the team later decides to take no action after the review. Regarding record retention under Standard V(C), Rahman is most likely required to:

Rahman should keep the model inputs and outputs. Record retention applies to decisions to buy or sell and also to reviews that do not lead to a change in position, and computer-based model outputs and input parameters are listed examples of supporting documentation.

  1. Akeep records of the model inputs and outputs, because reviews that do not change a position are coveredCorrect
  2. Bdiscard the records, because no buy or sell decision resulted from the review
  3. Ckeep only the final group report, because model details belong to the team leader

Explanation

Standard V(C) requires records substantiating the scope of research and reasons for actions or conclusions, and the requirement applies to reviews that do not lead to a change in position. Model input parameters and outputs are listed examples. Which records are required depends on the member's role, but the review here involved her directly.

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