1. Joe Smith, an investment adviser, has two clients: Nathan King, 50 years old, and Tony Wall, 40 years old. Both clients earn roughly the same salary, but King wants only to achieve a steady rate of return with low volatility to pay for his childrens education; Wall has a much higher risk tolerance because he has a large asset base. Wall is willing to invest part of his assets very aggressively. Smith recommends investing 25 percent of both portfolios in consumer staple companies with low growth but consistently pay dividends over time.

Did Joes statements to King and Wall violate the CFA Institute Code and Standards? Please explain which standard is breached.