Wes Smith, CFA, works for Advisors, Inc. In order to remain in compliance with Standard Ⅴ (A), Diligence and Reasonable Basis, Smith may recommend a security in which of the following situations（）
A. Advisors’ research department recommends a stock.
B. Smith overhears a highly-regarded analyst from a rival firm recommend that the security is a good investment.
C. Smith reads a favorable review of the security in a widely read periodical.
参考答案：A
解析：
Smith will be in violation if he acts solely on the basis of an opinion of an employee of another firm, since he does not know (or has not confirmed) the factual information that underlies the recommendation. The same can be said about what he read in the periodical. Use of information within the firm can be relied upon unless the Smith has reason to believe the source lacks a sound basis.