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CFA Level I · CFA Level I Exam · Guidance for Standard V: Investment Analysis, Recommendations, and Actions

An analyst publishes a research report on a structured investment product. To comply with Standard V(B), the report should most likely:

The report should include the factors relevant and important to the structured product, along with its basic characteristics, so the reader can follow and challenge the reasoning. Leaving out risks or giving only a conclusion would not satisfy Standard V(B) on communication with clients.

  1. Aomit the product's risk characteristics to keep the report short
  2. Binclude factors relevant and important to the product so readers can follow and challenge the reasoningCorrect
  3. Cpresent only the conclusion, since clients rely on the analyst's judgment

Explanation

For structured products the member must include relevant and important factors and the basic characteristics of the investment. The reader must be able to follow and challenge the reasoning. Omitting risks or showing only conclusions prevents this.

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