Client Values in Investment Decisions

Very Easy Ethical Decision-making Duties To Clients

John is a financial advisor who has been working with a high-net-worth client, Sarah, for over five years. Recently, Sarah expressed interest in sustainable investing and requested that her portfolio reflect her values. John believes that traditional investments would yield a higher return, but he also understands the importance of aligning investments with client values.

Which of the following actions would best demonstrate John's duty to his client, Sarah?

Invest Sarah's portfolio solely in traditional assets, as they have historically provided better returns.

Create a diversified portfolio that incorporates sustainable investments, aligning returns with Sarah's values.

Suggest Sarah invest in a high-risk product that offers significant short-term gains, disregarding her values.

Hint

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