What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Ethical and Professional Standards
Standard I(C) Misrepresentation practice questions
Standard I(C) Misrepresentation is part of CFA Level I Ethical and Professional Standards. Ethics questions test judgment under the Code and Standards, especially duties to clients, employers, markets, and the CFA Program. Use this page to review the controlling ideas, then work through 7 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Ethical and Professional Standards
Standard I(C) Misrepresentation
Presenting another analyst's report as one's own work most directly violates:
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Standard I(C) Misrepresentation
A manager advertises, "Our strategy cannot lose money," although losses are possible. The most direct violation is:
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Standard I(C) Misrepresentation
An analyst uses a vendor's chart in a client presentation without naming the vendor. The chart is NOT common knowledge. The analyst most likely:
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Standard I(C) Misrepresentation
A manager licenses a third-party macro model, changes the chart colors, describes the model as her firm's proprietary framework, and uses the vendor's forecasts in client presentations without attribution required by the license. The conduct most likely violates:
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Standard I(C) Misrepresentation
An analyst uses a generative AI tool to draft a report section. The tool reproduces several distinctive paragraphs from a subscription research service licensed to the analyst's firm. The analyst verifies the numbers but publishes the text without attribution. The analyst most likely violates the Standards because he:
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Standard I(C) Misrepresentation
A wealth adviser tells prospects, 'Our capital preservation strategy has never had a negative calendar year; if you hire us, your principal will be protected.' The strategy uses investment-grade bonds and cash equivalents but has no formal guarantee from a bank or insurer. The statement is least likely acceptable because:
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Standard I(C) Misrepresentation
An adviser markets a structured note as 'principal protected at maturity, so investors cannot lose money.' The note's repayment depends on the solvency of the issuing bank, and the marketing material does NOT discuss issuer credit risk. The statement is most likely inappropriate because:
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