Ethical and Professional Standards Q46

0. Jessica Morales works as an investment adviser for Chris Crosby, a middleaged, risk-averse investor. As per the investment policy statement, Morales invests in low-risk, high-income equities for Crosby keeping in mind his current needs and objectives. Recently Crosby‟s mother passed away leaving him with a significant inheritance. Morales continues to invest as before without any change in the investment strategy. According to the CFA Institute Standards of Professional Conduct, Morales should:

  • Option : A
  • Explanation : Refer to Standard III(C) Suitability.
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