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CFA Level 3
Ethical and Professional Standards

Ethical Decision-Making in Client Investment Preferences

Easy Ethical Decision-making Duties To Clients

As a portfolio manager at a registered investment advisory firm, you have been charged with providing tailored investment advice to your high-net-worth clients. One of your clients, Ms. Johnson, has recently expressed a strong interest in sustainable investing, especially in firms with high environmental, social, and governance (ESG) ratings.

However, you have also been monitoring a particular sector that shows strong potential for high returns in the short term. This sector does not strictly align with Ms. Johnson's values concerning sustainability. You know that investing in this sector could significantly benefit her overall portfolio performance and yield immediate financial gains.

Discuss the ethical considerations you must navigate in serving Ms. Johnson and provide a reasoned course of action that aligns with your duties to clients while also considering Ms. Johnson's expressed preferences and investment goals.

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