How do I avoid picking overbroad answers in CFA Ethics?
A lot of wrong choices sound very ethical because they are strict. I sometimes pick the most conservative answer and still miss the question.
Strict is not always correct. The best Ethics answer states what the Standards require, not the harshest action imaginable.
If a research note says a model "guarantees downside protection," the fix is accurate communication about assumptions and limits. It does not mean models can never be used. If a firm updates clients about a recommendation, fair dealing requires a fair dissemination process. It does not mean every client must receive identical trades at the exact same time regardless of mandate.
When two answers sound ethical, ask:
- Does this answer match the exact duty?
- Does it add a requirement that is not supported by the facts?
- Does it punish the actor for an outcome rather than conduct?
That filter catches many overbroad distractors.
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