The written investment mandate for a client's portfolio specifies that the portfolio be invested in U.S. large-cap stocks. In order to improve the risk-adjusted performance of the portfolio, Ken invests a small percentage of portfolio assets in a small-cap ETF. Has Ken violated the Standards of Professional Conduct?
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No. This is permitted under Standard III. A. Loyalty, Prudence, and Care. |
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Yes. He violated Standard III. C. 2. Suitability |
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No. This is permitted under Standard V. A. Diligence and Reasonable Basis |
No. This is permitted under Standard V. A. Diligence and Reasonable Basis. So ken has not violated the Standards of Professional Conduct.
The written investment mandate for a client's portfolio specifies that the portfolio be invested in U.S....
MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text? A) a certificate of deposit issued by a bank B) a new automobile C) a United States Saving Bond D) a mutual fund held in a retirement account 2) Which of the following is NOT traded in the securities markets? A) stocks B) bonds C) derivatives D) real estate 3) The governmental agency that oversees the capital markets is the A) Federal Trade Commission....