Ethical And Professional Standards - Ethical And Professional Standards Section 1

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11. Which of the following is least likely a reason for laws being insufficient to ensure ethical conduct among market participants?

  • Option : B
  • Explanation : Laws can vary across jurisdictions. This may encourage questionable practices to move to places that are less restrictive in nature. Statements A and C are valid reasons for why the law alone might be insufficient to ensure ethical behavior.
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13. Which of the following parties should an investment professional consider as stakeholders while making decisions in an ethical manner?

  • Option : C
  • Explanation : An investment professional should consider the risk to all stakeholders such as an employer, clients, family, and market participants while making decisions.
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14. Which of the following would be a step in the consideration phase in an ethical decision-making process?

  • Option : B
  • Explanation : Statement A is a step once the decision is already made and Statement C is a step in the identification phase of the ethical decision-making process.
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