C) Joyce has not satisfied Standard V(A): Diligence and Reasonable Basis by basing her decision solely on the responses to her RFP -✔✔C) Joyce has not satisfied Standard V(A): Diligence and Reasonable Basis by basing her decision solely on the responses to her RFP Standard V(A): Diligence and Reasonable Basis requires that members exercise diligence and thoroughness when taking any investment actions. While the information Joyce received in response to her RFP may be thorough and adequate for Joyce's purposes, it is inappropriate for Joyce to take the information simply at face value. Proper diligence would require that Joyce take steps to verify the information and utilize other sources to supplement the information received from each potential manager. Also, Standard III(B): Fair Dealing concerns dealing with clients and therefore has nothing to do with this situation. Ichiru Securities (IS) sends clients monthly statements with returns calculated as gross of fees. In the monthly statement, IS does not disclose that returns are presented as gross of fees. IS fully discloses fees in its annual newsletter, which is sent to all clients, and in all advertising materials. Does IS most likely violate Standard III(D) on performance presentation? A) Yes, because IS calculates returns as gross of fees B) Yes, because IS does not disclose that returns are gross of fees C) No, because fees are clearly disclosed to clients and prospective clients -✔✔B) Yes, because IS does not disclose that returns are gross of fees While the standard does not prescribe how returns should be calculated, IS must include disclosures that fully explain how returns are calculated in order to make its monthly statements fair and complete. So each monthly statement must disclose whether fees are calculated gross or net of fees. Kim Daniels, CFA, works in the trust department of the Springfield Savings & Loan (SSL). He also volunteers on the Board of a not-for-profit museum, whose investments are not managed by SSL. Alex Kane, the museum director, asks the Board to approve a transfer of funds from its investments to address a cash flow problem. Kane also mentions that their broker offers a margin loan at 5.75%. Daniels suggests that SSL may be able to lend money to the museum at 3.5%. The next day, Daniels asks SSL's loan manager to call Kane and discuss the SSL loan. Daniels does not mention that he is on the museum's Board. Does Daniels most likely violate Standard VI(A) on disclosure of conflicts?