Standard 5 Investment Analysis, Recommendations and Actions

Question 1

What are the three subjects of standard five?

Answer 1

Diligence and Reasonable Basis.
Communication
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Question 2

What is the first subject of standard five?

Answer 2

Diligence and Reasonable Basis - Members must exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions. Also, have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation or action.

Question 4

For record retention, one must use public sources when recreating new records at a new firm. You cannot use information from the previous firm.

Question 5

One must keep records of both those that lead to changes in positions and those that don’t. Electronic or hard copy doesn’t matter.

Question 6

CFA advises record retention of 7 years, however, not obligatory, follow firm policy or applicable law.