Question:

Martha Stevens, CFA, is an investment manager who uses her friend, Robert James, exclusively for her clients’ brokerage transactions. James provides better services than other brokers in return for a slightly higher price, which Stevens believes is justified. Which of the following statements is most accurate?

A Stevens has not violated any standard.

Explaination

Stevens is justified in using James as a broker, as the slightly higher charges are justified by the better service.