Sandy and Phil recently married and are both in their early $20$s$.$ In establishing

their financial goals, they determine that their three long$-$term goals are to

purchase a home, provide their children with a college education and plan for

their retirement.

They decide to seek professional assistance in reaching these goals. After

considering several financial advisers who charge an annual fee based on the

size of their portfolio, they decide to go to Sandy$$s cousin Larry the stockbroker.

Larry tells them that the only fee he$$ll charge is a transaction fee. In their first

meeting, Larry recommends stocks of several well$-$known companies that pay

high dividends. Three months later, Larry tells them that due to changing market

conditions, they need to sell the stocks and buy several others. Three months later,

the same thing happens.

At the end of the year, Phil and Sandy were surprised to see that the total dollar

value of their portfolio had declined. After careful analysis, they found the

transaction fees had exceeded any gains the stocks had made.

Would Larry have a possible personal reason for handling Sandy and Phil$$s

portfolio as he did? Explain. Do you think Larry behaved ethically?