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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
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