CFA Level I sample question

CFA Level I Guidance for Standards I–VII question

Ethical and Professional Standards / Guidance for Standards I–VII

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Guidance for Standards I–VII sample question

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Ethical and Professional Standards

Guidance for Standards I–VII

Calloway Investments receives shares in a heavily oversubscribed IPO that is suitable for many client accounts. The firm's written allocation policy, disclosed to clients, calls for pro rata allocation among all suitable accounts that submitted indications of interest. Portfolio manager Iris Nakamura notices that two of those accounts recently lost money on an unrelated recommendation, so she awards them double their pro rata share of the IPO to restore goodwill, reducing the allocations of the other suitable accounts. Under Standard III(B) Fair Dealing, Nakamura most likely:

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