A is correct. The statement, “Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence” can be found in the CFA Institute Standards of Professional Conduct, Standard I–Professionalism (D) Misconduct.

 B is incorrect. The statement, “Members and Candidates must place the integrity of the investment profession and the interest of clients above their own interest” can be found in the CFA Institute Code of Ethics. It is not part of the CFA Institute Standards of Professional Conduct, Standard I–Professionalism. 

C is incorrect. The statement, “Members and Candidates must maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals” can be found in the CFA Institute Code of Ethics. It is not part of the CFA Institute Standards of Professional Conduct, Standard I–Professionalism.

A is correct because Kozniak does not appear to have violated any CFA Institute Standards of Professional Conduct. Because she is known in the market for investing and brokering property and both parties have worked with Kozniak in the past, both parties would know of her interests. In addition, in both cases she acts for her own account as a primary investor, not as a broker. She buys the property for her own portfolio and then sells the property from her own portfolio. Therefore, Kozniak did not violate Standard  VI(A)– Disclosure of Conflicts. When she purchased the property for her portfolio, she saved her client from losing the building to the bank and did not charge a sales commission. Because the sale of the property to her other client did not take place until six months after her purchase and she was unable to contact the client who had earlier expressed interest prior to her purchase, she cannot be accused of violating any loyalty, prudence, or care to either client [Standard III(A)–Loyalty, Prudence, and Care]. 

B is incorrect because Kozniak is known in the market for investing and brokering property and both parties have worked with Kozniak in the past, so both parties would know of her interests. In addition, in both cases she is acting as a primary investor, not as a broker. She buys the property for her own portfolio and then sells the property from her own portfolio. Therefore, Kozniak did not violate Standard VI(A)–Disclosure of Conflicts). 

 C is incorrect because when she purchased the property for her portfolio she saved her client from losing the building to the bank and did not charge a sales commission. As the sale of the property to her other client did not take place until six months after her purchase and she had not contacted the client who had earlier expressed interest prior to her purchase she cannot be accused of violating any loyalty, prudence or care to either client [Standard III(A)–Loyalty, Prudence, and Care].