Ethical Communication in Investment Analysis

Very Hard Cfa Institute Code And Standards Investment Analysis - Communication

As an investment analyst working for a reputable asset management firm, you are responsible for preparing research reports that inform potential investors. You are aware that one of the fundamental principles of the CFA Institute Code of Ethics and Standards of Professional Conduct is the duty to provide fair and accurate communication. During a discussion with a colleague, it is suggested that your report should emphasize only the investments with the highest past returns, while downplaying or omitting those that have performed poorly.

Which of the following actions is most aligned with the ethical standards prescribed by the CFA Institute regarding investment analysis and communication?

Include a balanced view of all investments, highlighting both high and low performers, with detailed analysis.

Focus solely on the top-performing investments to attract potential clients, as they are likely to yield the highest returns.

Omit detailed explanations of lower-performing investments to maintain a positive narrative in your report.

Hint

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