Barry, a financial advisor, recommended that a client, Margo, purchase shares in the Recluse Mutual Fund. Relying on Barry's recommendation the client purchased 100 units. The entire stock market collapsed, and the value of the Recluse Mutual Fund was reduced significantly. Margo was surprised to learn that Barry earned a commission on each unit sold to her clients. Is Barry liable to Margo?

Multiple Choice

a.No, mutual fund dealers are not liable to their clients for losses incurred.

b.Yes, Barry breached his fiduciary duty by not disclosing that he received a commission on sales.

c.Yes, Barry failed to meet the standard of care for a financial adviser by recommending a mutual fund that failed.

d.No, Barry's advice did not cause the loss.

e.No, Barry met the standards of care for a financial adviser.