CFA Level I · CFA Level I Exam · Guidance for Standard V: Investment Analysis, Recommendations, and Actions
An analyst plans to use a research report on a listed company produced by an independent research aggregation website and posted on social media. Under Standard V(A), the analyst most likely should:
The analyst should apply a greater level of review. Standard V(A) says data from blogs, aggregation websites or social media may need more scrutiny than information from established research organizations. Third-party research can be used once it is found sound, but it cannot be relied on blindly.
- Arely on it in good faith, because third-party research never requires review
- Bapply a greater level of review than for information from established research organizationsCorrect
- Creject it automatically, because third-party research cannot be used
Explanation
The guidance says information from blogs, research aggregation websites or social media may require a greater level of review than information from established research organizations. Members must make reasonable inquiries into sources and accuracy. Automatic rejection is wrong because third-party research may be used if found sound, and automatic reliance ignores the duty to check.
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