Mike Jordan recently met his old friend, Charlie Barklee, who's an accomplished statistician. Charlie showed him his new model for predicting stock prices and after considerable discussion, Mike was convinced the model was a viable alternative to his current methodology for picking stocks. To test it, he downloaded historical data from a well-known statistical data provider's web site. The tests indicated that some parts of the model needed fine tuning, which Mike implemented himself, without Charlie's help. Mike:
- cannot circulate the model since it is not publicly available.
- can show his clients the model, without any special disclosures, because all of the tests were done by him with publicly available data.
- none of these answers.
- must acknowledge Charlie's contribution. Otherwise, he would be in violation of the code of ethics and be subject to disciplinary action from AIMR.
Answer(s): D
Explanation:
Standard II (C) - Prohibition against Plagiarism.