3.Mark Hannning, CFA, is writing a research report on a firm. Hanning's
supervisor, Rob Jannsen, sees a draft which includes favorable earnings
projections. A few days later, Hanning obtains additional data that
causes him to revise the projections downward. Right before public
distribution of this report, Hanning learns that Jannsen has substituted
the earlier, more favorabl earnings projections into the report without
Hannning's knowledge. Hanning should most appropriately:
A. consult with internal counsel and insist that this matter be reported
to the regulators immediately.
B. insist that either the report be corrected, or his name be removed
from the report
C. permit publication of this report, but issue a follow-up report
correcting the earnings projections.
Ans: B
15.Jenny Pickler, a Level II CFA Candidate, writes an economic forecast
containing several interset rate projections. Her firm's investment
committee reviews Pickler's report and changes several of the interest
rates Pickler ahd forecast. To comply with CFA Institute Standards,
Pickler:
A. does not need to take any further action.
B. should ask that her name be removed from the report.
C. must independently review the data supporting the investment committee's
changes.
Ans: A