What is the "mosaic theory" in CFA ethics?

A Creating false information

B Combining public and non-material nonpublic information to form an investment conclusion

C A type of fraud

D Portfolio construction technique

✓ Correct Answer: Option B

Mosaic theory allows analysts to reach conclusions by combining public information with non-material nonpublic information.

💡 Why is B) the correct answer?

The correct answer to the question "What is the "mosaic theory" in CFA ethics?" is Option B: Combining public and non-material nonpublic information to form an investment conclusion.

The other options — A) Creating false information, C) A type of fraud, D) Portfolio construction technique — are incorrect for this CFA Exam Prep question. As explained above: Mosaic theory allows analysts to reach conclusions by combining public information with non-material nonpublic information.

📚 About This CFA Exam Prep Practice Question

This 3-level CFA Exam Prep question from the Ethical & Professional Standards topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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What is the "mosaic theory" in CFA ethics?

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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