Ethical Decision-Making in Portfolio Management

Emma is a senior portfolio manager at a large asset management company. She recently participated in a conference where she learned about a new investment strategy that promises significant returns. Excited about the potential, she considers implementing this strategy for her clients' portfolios. However, Emma recalls a previous study indicating that such strategies may carry substantial risks and that past performance does not guarantee future results. Emma must decide whether to proceed with the implementation of this new strategy without fully assessing the risks involved.