Responsibilities to Clients in Investment Decisions

Very Easy Professional Standards Application Responsibilities To Clients

As a financial analyst, you have a duty to uphold the highest level of ethical standards in your practice. Your client, a retirement fund manager, has asked for your opinion on a particular investment strategy. The manager wants to pursue the strategy aggressively, despite your belief that it could significantly increase risks. According to the CFA Institute's Code of Ethics and Standards of Professional Conduct, what is your primary responsibility in this situation?

To support the client's aggressive investment strategy regardless of your opinion.

To inform the client about the potential risks of the strategy and ensure they understand those risks.

To recommend a safer investment strategy without discussing the client's preferences.

Hint

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