Scott LaRue is a portfolio manager for Washington Advisors. Washington has developed a proprietary model that has been thoroughly researched and is known throughout the industry as the Washington model. The model is purely quantitative and screens stocks into buy, hold, and sell categories. The basic philosophy of the model is thoroughly explained to clients. The director of research frequently alters the model based on rigorous research-an aspect that is well explained to clients, although the specific alterations are not continually disclosed. Portfolio managers then make specific sector and security holding decisions, purchasing only securities that are indicated as "buys" by the model. LaRue has conducted some research on his own and feels the model would be improved by adding some factors. Based on his research, he applied his own version of the model, which is occasionally in conflict with the Washington model. LaRue discloses his model to his own clients but not to his supervisor. LaRue is:()
A. violating the Standards by not considering the appropriateness of the recommendations to clients.
B. violating the Standards by not being objective.
C. violating the Standards by not having a reasonable and adequate basis for his investment recommendation.
参考答案:C
解析:
Violating the Standards by not having a reasonable and adequate basis for his investment recommendation. The ad hoe model is not part of the formal research process and does not formulate an adequate basis for a recommendation.