By acting on his friend‟s advice did Smith violate any CFA Institute Standards of Professional Conduct?

Focuses on CFA Ethical Standards 5 -7. Answer the question one by one.1.Muhammad Ikram is a CFA charterholder and is supporting the marketing department of XYZ Investment Advisors in their promotions. While marketing the company online, Ikram writes in a chatroom; “XYZ Investments guarantees a return of 15% to its clients because we hire only well-qualified CFA charterholders as our employees.” has Ikram violated the CFA ethical standards? If so which one’s and why?2.During a lunch with his friend, who is an analyst in the software industry, John Smith CFA, a trader with Zeta Capital finds out that there are rumors of a merger between two software companies. Smith has always valued his friend‟s suggestions and the next day places a large buy order to be distributed equally to all discretionary accounts for which the target firm is suitable. He also informs all his non-discretionary accounts of the recommendation. By acting on his friend‟s advice did Smith violate any CFA Institute Standards of Professional Conduct?3.Roland Corp. has hired Delta Investment Bank to underwrite its secondary public offering. Delta already has a sell recommendation on the stock given by its research unit to its brokerage and trading. Which of the following actions is most appropriate to avoid violating CFA Institute Standards of Professional Conduct?4.Ali Haider is responsible for calculating his firm‟s performance returns. He notices that the return for November is impressive if he includes a new account which started in mid-November and excludes an account which exited in early-November. In calculating performance returns the firm‟s policy is to include accounts which exited during the month. Furthermore, performance numbers of new accounts are to be considered only after they have been with the firm for a period of one month. In reporting the performance for November, Haider omits the exited account and includes the new account. Is this a violation of the CFA ethical standards is so which one’s and why?5.Carla Bersollini is a portfolio manager for a balanced fund. Amongst her clients are also her parents who are fee-paying like all the rest. Bersollini has beneficial ownership in her parents‟ account and is required by her firm Gallant Investment Company preclearance and reporting requirements for personal transactions. When a certain hot IPO becomes available she advises the brokers to buy shares for her parents‟ account first if it‟s suitable for her parents and herself and then does she place the remaining order with her clients, keeping their suitability in mind. She doesn‟t report the transaction. Bersollini‟s supervisor, Carlo Pagni, does not have any procedure in place in review the transactions executed by his subordinates.6.Lily Smith attended an industry conference and noticed that John Baker, an investment manager with Baker Associates, attracted a great deal of attention from the conference participants. On the basis of her knowledge of Baker’s reputation and the interest he received at the conference, Smith recommends adding Baker Associates to the approved manager platform. Her recommendation to the approval committee includes the statement “John Baker is well respected in the industry, and his insights are consistently sought after by investors. Our clients are sure to benefit from investing with Baker Associates.” Has Smith violated the CFA code of ethical standards? Why or why not?7.Martin Blank develops an analytical model while employed by (GPIM). While at the firm, he systematically documents the assumptions that make up the model as well as his reasoning behind the assumptions. As a result of the success of his model, Blank is hired to be the head of the research department of one of GPIM’s competitors. Blank takes copies of the records supporting his model to his new firm. Is this a violation of the CFA code of ethical standards? Why or Why not? 8.James Handley works for the trust department of Central Trust Bank. He receives compensation for each referral he makes to Central Trust’s brokerage department and personal financial management department that results in a sale. He refers several of his clients to the personal financial management department but does not disclose the arrangement within Central Trust to his clients. Has Handley violated the CFA ethical standards?