Ethical Diligence in Investment Analysis

Medium Cfa Institute Code And Standards Investment Analysis - Diligence

As a CFA charterholder, you are tasked with conducting due diligence on a newly valued company that operates in a rapidly changing industry. In your analysis, you uncover that the company has disclosed potential risks that could significantly impact its future profitability. Given your ethical obligations under the CFA Institute Code of Ethics and Standards of Professional Conduct, how should you proceed with your investment analysis?

Proceed with recommending the investment, highlighting only the positive aspects of the analysis to ensure client interest.

Provide a thorough and balanced analysis, including both the potential benefits and the disclosed risks affecting the investment.

Disregard the risks disclosed by the company, as it is not your responsibility to interpret the financial disclosures for clients.

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