Carol Hull, CFA, is an investment advisor whose prospective client, Frank Peters, presents special requirements. To construct an investment policy statement for Peters, Hull inquires about Peters’ investment experience, risk and return objectives, and financial constraints. Peters states that he has a great deal of investment experience in the capital markets and does not wish to answer questions about his tolerance for risk or his other holdings. Under Standard III(C), Suitability, Hull:
A) may accept Peters’ account but may only manage his portfolio to a benchmark or index.
B) is permitted to manage Peters’ account without any knowledge of his risk preferences.
C) must decline to enter into an advisory relationship with Peters.作者: strikethree 时间: 2011-7-11 19:34
I'm going w/ C.
def not B. A doesn't seem right either.. to just automatically manage to a bm or index.作者: cityboy 时间: 2011-7-11 19:34
This can only come from Schweser......作者: oneboy 时间: 2011-7-11 19:34
Thats a retarded question if I've ever seen one. In the end it's not really an ethics-related question, but something covered more in depth in the individual portfolio section.. from which you can reasonably assume that C is correct only by default, since A and B make even less sense (albeit only slightly less).作者: mar350 时间: 2011-7-11 19:34
