Wolfram Hitchwalker is a money manager with Armadillo Investments. He currently manages a few retirement accounts, clien

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Wolfram Hitchwalker is a money manager with Armadillo Investments. He currently manages a few retirement accounts, clients who have a steady current income need and are averse to capital loss. Wolfram recently read a research report which concluded that the stock of HighFly, Inc. was a great buy because of a pending expansion plan into Southeast Asia which would double the profits of HighFly from foreign operations. Wolfram decided that the analysis was sound and that his clients could gain significantly if he bought the HighFly stock now and sold it once the price run-up occurred. Accordingly, he sold some of the fixed income securities in his client accounts and bought shares of HighFly. After two weeks, he sold the shares at a substantial profit and reinvested the funds back in fixed income securities. Wolfram hasI. not violated any code of ethics since the investment was wise and made his clients better off.II. has violated Standard IV (A.1) - Reasonable Basis & Representations.III. has violated Standard IV (B.1) - Fiduciary Duties.IV. has violated Standard IV (B.2) - Portfolio Investment Recommendations and Actions.

A. II and IV only
B. III and IV only
C. I only
D. II only E. IV only F. III only