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Question of the Week: Level 2 - Ethics

Nicholas Kaplan is an equity research analyst, currently researching Anderson Telecommunications (AT).  His research suggests a recommendation of “hold”.  Sanford Anderson, CEO of AT, challenges Kaplan to a golf match; Kaplan, a fair golfer accepts and proposes a wager of £500 per hole.  Anderson, known to be an excellent golfer, accepts the wager, then clearly plays poorly, owing Kaplan £5,000 at the end.  The following week, Kaplan publishes his research report, along with the “hold” recommendation.  With regard to Standard I(B) Independence and Objectivity, Kaplan has most likely:

Question of the Week: Level 2 - Ethics 8 votes

A. violated the Standard.
12% 1 vote
B. not violated the Standard because he didn’t change his recommendation.
12% 1 vote
C. not violated the Standard because he had no way of knowing that Anderson would deliberately lose the match.
75% 6 votes


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