单选题
Jason, CFA, works for a regional brokerage firm. He estimates that RHG
company will increase its dividend by $1.50 a share during the next year. He
realizes that this increase is contingent on pending legislation that would, if
enacted, give RHG a substantial tax break. The U.S. representative for RHG's
home district has told Jason, that, although she is lobbying hard for the bill
and prospects for passage look good, Congress's concern over the federal deficit
could cause the tax bill to be voted down. RHG has not made any statements
regarding a change in dividend policy. Jason writes in his research, "We expect
RHG's stock price to rise by at least $8.00 a share by the end of the year.
Because the dividend will increase by $1.50 a share, the stock price gain will
be fueled, in large part, by the increase in the dividend. Investors buying the
stock at the current time should expect to realize a total return of at least 15
percent on the stock." According to Standards:
- A. Jason violated the Standards because he failed to separate opinion from
fact.
- B. Jason violated the Standards because he used material inside
information.
- C. Jason did not violate the Standards.