Duties to Clients: Ethical Decision-Making

Alex is a CFA charterholder and works as an investment advisor at a financial firm. One of his clients, Mrs. Johnson, is nearing retirement and has expressed a strong desire for capital preservation while still wanting some growth potential. During a review meeting, Alex discusses a high-risk venture capital investment that he believes could yield significant returns. Although he thinks the investment might interest Mrs. Johnson, he recalls her preference for safety and lower risk.

Which of the following actions should Alex take to fulfill his duty to Mrs. Johnson as her investment advisor?