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

According to the CFA Institute's discussion of its ethical commitment, investment professionals should most likely incorporate which concern into their investment decision making?

Investment professionals should remain mindful of the long-term health of financial markets and build concern for market sustainability into their investment decisions, because markets function to an important extent on trust. The text neither prioritizes short-term employer returns nor expects ambiguity to be avoided.

  1. AThe long-term health and sustainability of financial marketsCorrect
  2. BThe maximization of short-term returns for the employer
  3. CThe avoidance of all situations in which choices are ambiguous

Explanation

The text states that markets function to an important extent on trust and that investment professionals should remain mindful of the long-term health of financial markets and incorporate concern for market sustainability in their decision making. It also acknowledges that many decisions are not clearly right or wrong, so avoiding ambiguity is unrealistic.

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