• 2022-06-06
    ZhaoXuan,CFA,isasellsideinvestmentanalyst.Whileatasoftwareindustryconference,ZhaohearsrumorsthatGreenRunSoftwaremayhavefalsifieditsfinancialresults.Whenshereturnstoheroffice,ZhaoconductsathoroughanalysisofGreenRun.Basedonherresearch,includingdiscussionswithsomeofGreenRun'scustomers,ZhaoisconvincedthatGreenRun'sreported50%increaseinnetincomeduringrecentquartersiscompletelyfictitious.Sofar,however,ZhaoistheonlyanalystsuspiciousaboutGreenRun'sreportedearnings.AccordingtotheCFAInstituteCodeofEthicsandStandardsofProfessionalConduct,theleastappropriateactionforZhaoisto:
    A: reporthersuspicionstoGreenRun'smanagement.
    B: donothing,untilotheranalystssupportheranalysis.
    C: recommendherclientsselltheirGreenRunsharesimmediately.