1. Wally Manaugh, CFA, has recently been working on a research report covering BriteCo, a mid-sized energy firm. He has nearly completed all his research, and has elected to rate the firm as a “hold”. Subsequently, he meets with other analysts in a social context, and overhears a group talking quite favorably about BriteCo. He is not absolutely certain, but he believes one of the group members is a former employee of BriteCo. Upon returning to his office, he second-guesses his initial analysis and tilts his report to be a bit more favorable, although he retains the “hold” recommendation. Manaugh has violated the Standards because he:

A. Cannot trade or cause others to trade on this information.

B. Does not have a reasonable and adequate basis to change his report.

C. Did not distinguish fact from opinion, and did not seek compliance approval.