Which of the Following Are Guiding Principles for Ethical Behavior

question 25

Multiple Choice

Which of the following are guiding principles for ethical behavior in the asset management industry as put forward by the CFA Center for Financial Market Integrity?

• A) The interests of investment professional come first.
• B) The preferred method for promoting fair and efficient markets is to set up a central oversight board.
• C) Financial markets in various countries should develop high-quality standards for reporting financial information that reflect local customs.
• D) Financial statements should be reported from the perspective of firm shareholders.
• E) All of these are correct.

---

Definitions:

Stock Market

A collection of markets and exchanges where the buying, selling, and issuance of shares of publicly-held companies occur.

Market-to-Book Value

A ratio used to compare a company's market value to its book value, indicating how much investors are willing to pay above or below the net asset value.

Financial Statements

Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Stock Market

A public market for the trading of company stocks and securities, facilitating capital growth for listed companies and investment opportunities for individuals.