Responsibilities of CFA Charterholders towards Clients

Medium Cfa Institute Code And Standards Responsibilities - Reference To Cfa

As a newly qualified CFA charterholder, Emily is preparing to provide investment advice to her clients. During a client meeting, one of her clients, Mr. Smith, expresses his interest in high-risk tech stocks and asks Emily to recommend some. Emily remembers the CFA Institute Code of Ethics and Standards of Professional Conduct and considers her responsibilities towards Mr. Smith. Which of the following actions would most appropriately align with the CFA Institute Code and Standards regarding Emily's responsibilities towards her client?

Recommend one high-risk tech stock without conducting thorough research, as Mr. Smith is eager for fast returns.

Conduct a thorough analysis of all possible investment options, including the risks and benefits of high-risk tech stocks, before making a recommendation.

Inform Mr. Smith about the general performance of high-risk tech stocks over the past year without considering his individual situation.

Hint

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