Mr. Ricardo Garca, a recent graduate of Finance and Banking, began his professional career as a financial advisor in a renowned international financial institution. He

Mr. Ricardo García, a recent graduate of Finance and Banking, began his professional career as a financial advisor in a renowned international financial institution. He has been assigned a portfolio of 100 clients in the corporate segment, 80% of which are foreign companies operating in Mexico. On his first day, his immediate boss presented the characteristics and benefits of the new low cost credit that the financial institution has adopted. At that meeting, Mr. Garcia was told that by that month at least 3 low cost loans were to be placed for an amount of at least $100,000,000.00 MXN. The characteristics of the loan are that it has a rate of 8.5%, the lowest in the market; however, it has a series of commissions that led it to have a Total Annual Cost (CAT) of 14%, a net rate that in reality would be the highest in the market. At the end of the presentation, Mr. Ricardo stayed with his boss to discuss a pending matter with one of the clients in the portfolio assigned to him. When they were alone, he welcomed him again and told him about the medium-term growth potential he had in the finance company, the