A model expert developed a model. He gathered lots of historical data, which shows unilateral bull market, that is, only upward trend. If he made investment suggestions based on these historical data, is he in violation of the Code and Standards?
　　A.        No
　　B.        Yes, because he should combine more of other theories to make decision.
　　C.        Yes, because he should also simulate more of the downward trend.
　　Solution: C
　　The model expert violated the Code and Standards V(A) Diligence and Reasonable Basis by making investment suggestions based only on historical data which shows only upward trend. The proper way to avoid violating Standards is to simulate more of the downward trend also.

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