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RIP (Retire in Peace) Scenario Howard, a friend of yours, would like you to recommend an investment called PAIDs be purchased from the company for
RIP (Retire in Peace)
Scenario Howard, a friend of yours, would like you to recommend an investment called PAIDs be purchased from the company for which he works, Suncoast Investments, and sold as part of the retirement packages offered by Retirement Investment Products (RIP). The commission Howard would earn from such a deal certainly would bail him and his family out of the financial crisis they currently are experiencing. The problem is that PAIDs are complex investment instruments consisting of combinations of many other investments, and you have not been able to determine the degree of risk associated with them, either through Howard or other sources. The return expected from PAIDs is very attractive, and there is no doubt that offering higher returns on its products will help RIP attract more customers. Should you recommend the PAIDs without more complete knowledge about their riskiness? Howard is anxious to get the deal completed-he even offered to reward you if RIP invests in PAIDs through Suncoast Investments. What should you do? Questions What is the ethical dilemma? Should RIP be more concerned with return than risk when making its decision about the PAIDs? If the PAIDs are recommended, what should RIP tell its customers? Would you recommend the PAIDsStep by Step Solution
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