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.
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.
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