CFA考试资料答案R02.4 Standard III(A) - Answers.pdf

Question #1 of 25 Question ID: 1212311 Jack Stevens is employed by a company to provide investment advice to participants in the rms 401(k) plan. One of the investment options is a stable value fund run by the company. Stevens research indicates that the fund is far riskier and less liquid than the typical stable value fund and has a fundamental asset value lower than the book value of the assets. He tells Jessica Cox, the head of employee benets, about his research, and indicates that he will advise new employees to not invest in the fund and will advise employees who already own the fund to reduce their holdings in the fund. Cox points out that the fund is not in any current danger because there are very few redemptions requested of the fund. Cox also states that a sell recommendation may become a self fullling prophecy, causing investors to redeem their 7 3 2 shares and forcing the fund to liquidate, which in turn will cause the remaining investors to receive less 1 q than their promised value. Stevens agrees with this assessment and feels his duciary duty is to all i s employees. Stevens should: u