Jordan's Ethical Dilemma with Personal Investment

Hard Research Objectivity Standards Personal Investments

Jordan is a charterholder working as an equity analyst at a well-respected investment firm. Recently, he received a significant inheritance and decided to invest a substantial amount in a small-cap technology startup, XYZ Corp. While conducting his research for an upcoming report on the technology sector, he realizes that XYZ Corp. is a key competitor in the sector he is analyzing.

Jordan is aware of the CFA Institute's Research Objectivity Standards, which emphasize the importance of maintaining independence and avoiding conflicts of interest. As he prepares his report, he considers how to disclose his personal investment in XYZ Corp. in a way that complies with the ethical guidelines.

Which of the following actions would best adhere to the CFA Institute's Research Objectivity Standards regarding Jordan's personal investment in XYZ Corp.?

Jordan should disclose his personal investment in XYZ Corp. in his report but continue to provide an unbiased analysis of the technology sector.

Jordan should refrain from disclosing his investment and proceed with his analysis, as his personal financial interests do not legally require disclosure.

Jordan should sell his shares in XYZ Corp. before writing his report to avoid any perception of bias.

Hint

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