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Paula Munson, CFA, manages a mutual fund with an objective to emphasize income over capital gains. Magic Technologies is a growth stock that pays no dividend, but Republic’s research department believes the stock will dramatically outperform the S&P 500 over the next 12 to 18 months. Based on this strong recommendation, Munson adds Magic stock to her fund’s portfolio. Munson has: A. violated the Standards by relying on research that she did not perform herself. B. violated the Standards by failing to comply with her portfolio’s style mandate. C. not violated the Standards and improved the diversification of the fund. |