Ethical and Professional Standards 【Reading 10】Sample
When comparing the fiduciary responsibility under the Prudent Investor Rule (PIR) with that under the Prudent Man Rule (PMR), which of the following is CORRECT? The PIR does: A)
| permit the delegation of investment responsibility to third parties; the PMR does not permit the delegation of investment responsibility to third parties. |
| B)
| permit the delegation of investment responsibility to third parties; the PMR does permit the delegation of investment responsibility to third parties. |
| C)
| not permit the delegation of investment responsibility to third parties; the PMR does permit the delegation of investment responsibility to third parties. |
|
Under the PIR, delegation of investment to third parties is permitted, but this is not allowed under the PMR. |