Advising Clients with Limited Experience and High-Risk Investment Desires

Anna, a CFA charterholder and a financial advisor, is working with her new client, Mr. Baker, who has recently inherited a significant sum of money. Mr. Baker expresses a strong desire to invest in high-risk stocks as he is confident in the stock market's long-term performance. However, Anna knows that Mr. Baker has minimal investment experience and that his overall financial situation includes substantial debt obligations that could jeopardize his financial stability.

In this context, Anna is considering the best approach to ethically advise Mr. Baker while adhering to the CFA Institute's Code of Ethics and Standards of Professional Conduct.