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

The CFA Institute describes why applying the Code and Standards can be challenging. Which reason is most accurate?

Applying the Code and Standards is challenging because many decisions are not clearly right or wrong, and situational influences can overpower even well-intentioned professionals, tempting them to cut corners. They bind members and candidates regardless of local law.

  1. AMany decisions are not unambiguously right or wrong, and situational influences can overpower good intentions.Correct
  2. BThe Code and Standards apply only where local law is silent.
  3. COnly members with the CFA designation, not candidates, are bound by them.

Explanation

The text says many decisions are not unambiguously right or wrong and situational influences can overpower the best of intentions. It also states that the Code and Standards apply regardless of local laws and bind both members and candidates.

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