Chartered Alternative Investment Analyst (CAIA) Practice Exam 2025 – All-in-One Guide to Master Your Certification!

The violation of the Code and Standards in Ms. Zomek's actions is reflected in her failure to inform clients of the bias in the research report. Transparency is a fundamental principle in the investment community, particularly when it comes to disclosing any potential conflicts of interest or biases that may influence the integrity of research. By not informing clients of the bias in the research report, Ms. Zomek undermines the trust and ethical standards that are essential in a fiduciary relationship.

Investors rely on accurate and unbiased information to make informed decisions, and failing to disclose such biases could lead to misinformed investment choices. This act compromises the principle of fair dealing and could ultimately harm clients' financial well-being.

The other options, while relevant in discussing ethical obligations, do not directly address the critical issue of client transparency concerning bias in research. For instance, while acknowledging multiple sources of a report or including potentially biased data in her presentation are important practices, they do not directly equate to the failure to communicate the presence of bias itself, which is at the heart of ethical responsibility in investment analysis.