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CFA Level I · CFA Level I Exam · Guidance for Standard II: Integrity of Capital Markets

According to the CFA Institute's view of ethics and the capital markets, the phrase "for the ultimate benefit of society" in its mission is most likely intended to emphasize that:

The phrase stresses that global capital markets should allocate resources efficiently so capital reaches the places where it most benefits society, funding goods, services, innovation, jobs and living standards. It does not mean avoiding risk, and it does not place responsibility on regulators alone.

  1. Ainvestment firms should avoid all high-risk securities
  2. Bglobal capital markets should allocate capital to where it most benefits societyCorrect
  3. Cregulators alone are responsible for keeping markets stable and fair

Explanation

The text says well-functioning global capital markets allow capital to find its way to places where it most benefits society, funding goods, services, innovation and jobs. Option A is not stated anywhere. Option C is wrong because laws and regulation are insufficient alone; ethics must also guide behavior.

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