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CFA Level 2
Ethical and Professional Standards

Responsibilities to Clients in Investment Management

Hard Professional Standards Application Responsibilities To Clients

Jordan is a Certified Financial Analyst (CFA) working for a wealth management firm. He has been managing a portfolio for a high-net-worth client, Ms. Lisa. Recently, Lisa approached Jordan about investing in a highly speculative start-up that she learned about from a friend. The start-up is in an emerging market and has no established track record. Jordan believes it poses a significant risk to Lisa's overall portfolio, which is primarily composed of conservative investments like bonds and blue-chip stocks.

Despite knowing the risks, Jordan feels pressured to accommodate Lisa's wishes because she may withdraw her business if he doesn't. As a result, he considers investing a small percentage of Lisa's portfolio into this start-up while maintaining the majority in conservative assets.
Which of the following actions by Jordan would align best with his responsibilities to his client?

Hint

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