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CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I

Which statement about the "Application of the Standard" examples in the Standards of Practice Handbook is most accurate?

The examples illustrate how each standard applies to hypothetical but factual situations. Their names are fictional and they are not all inclusive, because circumstances vary widely and often involve gray areas. They are neither an exhaustive list nor accounts of real disciplinary cases.

  1. AThey illustrate how a standard applies to hypothetical but factual situations.Correct
  2. BThey are an exhaustive list that covers every contingency a member may face.
  3. CThey describe actual disciplinary cases involving named real individuals.

Explanation

The Handbook says the examples illustrate application to hypothetical but factual situations, with fictional names. It also says the material is not intended to be all inclusive, so the exhaustive option is wrong, and the names do not refer to real persons.

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