CFA Level I · CFA Level I Exam · Guidance for Standard V: Investment Analysis, Recommendations, and Actions
An analyst is gathering data for a recommendation from an established research organization and from an anonymous investment blog. Which approach is most consistent with Standard V(A)?
The analyst should apply a greater level of review to the blog. The Standard says the source of information influences the review needed, and blogs, aggregation sites, or social media may require more scrutiny than established research organizations.
- AApply the same level of review to both sources, since both are third-party
- BApply a greater level of review to the blog information than to the established organization's researchCorrect
- CAccept the blog information if it agrees with the analyst's existing view
Explanation
The guidance states the source influences the level of review, and information from blogs, aggregation websites, or social media may require greater review than that from more established research organizations. Agreement with prior views is not a test of soundness.
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