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Question:

Elizabeth Yang, CFA, is an analyst at a new equity research advisory service. She often has to give presentations to potential clients about her firm. Which of the following statements that she makes at one such presentation least likely violates Standard I (C): Misrepresentation?

A “I would recommend investing most of the retirement funds in certificates of deposits whose principal is guaranteed up to a certain amount by the U.S. government.”
explanation

• The principal amount of certificates of deposits is indeed guaranteed up to a certain amount by the U.S. government.
• Elizabeth cannot guarantee a good return based on her CFA designation.
• She cannot say that her firm is equipped to handle all the investment requirements of her client, as her firm only provides equity research advisory services.

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