You are a financial advisor working for a well$-$established wealth management firm that prides itself on providing personalized and trustworthy financial advice to its clients. One of your clients, Mrs$.$ Smith, has been with the firm for many years and has entrusted you with managing her substantial investment portfolio.

Mrs$.$ Smith is nearing retirement age and has expressed her desire to preserve her wealth while generating a steady income to support her retirement lifestyle. Over the years, you have worked closely with Mrs$.$ Smith to develop an investment strategy tailored to her goals, risk tolerance, and financial needs.

Recently, you come across a new investment opportunity that you believe has the potential to generate significant returns for your clients, including Mrs$.$ Smith. However, as you delve deeper into the opportunity, you uncover information that raises serious concerns about its legitimacy and risk profile.

The investment opportunity involves a high$-$risk venture in a volatile market sector, with no guarantees of returns and a substantial risk of capital loss. While the potential rewards are tempting, you realize that recommending this investment to Mrs$.$ Smith would not align with her conservative investment objectives and could jeopardize her financial security in retirement.

Question:

How should you approach the decision regarding the new investment opportunity? What steps can you take to fulfill your fiduciary duty to act in Mrs$.$ Smith's best interests while also considering the potential benefits and risks of the investment?