Question
Cameron is an investment advisor. He has two clients: Tan, 40 years old, and Tina, 25 years old. Both clients earn roughly the same annual
Cameron is an investment advisor. He has two clients: Tan, 40 years old, and Tina, 25 years old. Both clients earn roughly the same annual income from their respective employments. Tan has already built a well-diversified portfolio consisting of a large assets base and is willing to invest funds aggressively to achieve high growth. Tina has only recently started to invest in risky securities. Tina's objective is to save for her children's education and therefore prefers to invest her funds in securities that offer steady returns with low volatility. Cameron recommends that both Tan and Tina invest 40% of their portfolios in low yield, small-cap high-tech stocks in order to achieve a significant growth in the long run.
Which CFA standard is applicable in this scenario? Explain whether Cameron is violating that particular standard or not.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started