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Junaid Manzoor has been hired as head of risk management by KDB Asset Management. a small investment firm in Pakistan. Manzoor implements a risk messurement framework to gauge portfolio risk for the firm. Unfortunately, the methodology he implements for risk measurement has changed considerably in recent years and is no longer used internationally. Neither Manzoor nor anyone else at the firm is aware of the changes to risk measurement apporoaches. As a GARP member, has Junaid violated the GARP Code of Conduct?
a. No, this is not a violation of the GARP Code of Conduct because neither Manzoor nor the firm is aware of the changes to risk measurement approaches.
b. No, this is not a violantion as the methodology worked when Manzoor took his FRM exams
c. This is only a violation of the GARP Code of Conduct if investment decisions are made based on Manzoor's risk reports
d. Yes, this is a violation of the GARP Code of Conduct.
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