Guidance for Standard V: Investment Analysis, Recommendations, and Actions

Free CFA Level I lesson in Ethical and Professional Standards. 17 min read, ~2,616 words.

V(A) Diligence: every recommendation needs a reasonable and adequate basis backed by research, not opinion or rumor, scaled to the action taken. V(B) Communication: disclose the investment process, limitations, and risks, and separate fact from opinion using signal phrases like "We estimate". V(B)(1): give prompt notice of any material process...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• standard V investment analysis

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