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Galina-37 [17]
2 years ago
11

A new investment adviser that will use a passive management approach opens its first account with a customer that is placing $10

,000,000 under management. The customer states that he wants the portfolio invested aggressively in selected speculative stocks. The investment adviser should:
Business
1 answer:
PtichkaEL [24]2 years ago
4 0

Answer:

B.

Explanation:

Based on the information provided it can be said that the investment adviser should recognize that the customer's request is not within the scope of the adviser's expertise and retain an outside investment counsel. A "passive" investment manager believes in results generated by a diversified portfolio over one of individually selected stocks. Since the individual wants the adviser to choose the stocks, then the adviser has the responsibility to step back due to his lack of expertise selecting an individual stock portfolio and advise the individual to retain another investment advisor.

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