Win Jang is his firm’ s research director, and as one of his regular duties distributes a monthly "Top 10 Buys and Sells" list drawn from companies listed in Hong Kong. One month, Jang reads an academic research paper detailing a screening algorithm (based on companies earnings, depreciation, interest expense, and current stock price) that was used to generate abnormal profits in the German stock market. Jang applies the algorithm, without making any changes, to Hong Kong stocks, and uses the results to form the month’s buy and sell list. Jang has()
A. properly relied on another party’s research.
B. failed to have a reasonable basis for his investment recommendations, due to’ differences in the German and Hong Kong markets.
C. failed to have a reasonable basis for his investment recommendations, due to the reliance on a quantitative model.