I didn’t understand the question and answer. Please explain in detail. Thank you
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Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
The question says that Rodeny, CFA is responsible for identifying/hiring professionals to manage specific asset classes in his firm like Equity, Bond, Commodities etc. For this, he interviews various clients and check about their knowledge, code of conduct, their professionalism, their past record, quality of past work etc. He did everything that he is expected to do. The only thing, that he left out was to review his strategy style. He should have reviewed his strategy style and should have enquired the process or method by which he will choose the investments, what style will he adopt? Will it be Value or Growth style? What mindset does the person have while implementing investing strategies etc. Unfortunately he forgot to ask the advisor about what strategy does he adhere to i.e adherence to strategy. Hence, option A is the answer.
Please explain incorrect answer’s.
Option B says that the person reviewed his performance measures accurately which is correct. Rodney, CFA did check his past performance. So, the option is correct and it is not violated.
Option C : Internal Controls and Framework means how the organization works internally, what are the rules of procedures, policies inside the organization. This was also checked by him which is also true.