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CFA Level I · CFA Level I Exam · Ethics and Trust in the Investment Profession

According to the CFA Institute materials on applying an ethical framework, an investment professional who faces an ethical dilemma without a well-developed set of principles is most likely to:

Without a well-developed set of principles, an investment professional is most likely to fall into equivocation and indecision at best, or fraudulent conduct and destruction of public trust at worst, because laws and codes cannot replace individual ethical judgment.

  1. Abecome more profitable for the firm
  2. Brely on local law as a complete guide
  3. Cfall into equivocation and indecision or, at worst, fraudulent conductCorrect

Explanation

The text states that without a well-developed set of principles, thought processes can lead to, at best, equivocation and indecision and, at worst, fraudulent conduct and destruction of public trust. Laws and codes guide behavior but individual judgment remains critical, so relying on law alone is not what the text describes.

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