An investment consultant is recommending a certain class of mutual funds to the clienteles based on its exceptionally high probability of gain.It is an unethical practice not to also recommend a class of mutual funds with an exceptionally high probability of loss.

Question

Quizplus · Accepted Answer

Recommending investments based on their potential for gain is a standard practice, and it is not unethical to omit recommendations for investments with a high probability of loss. The consultant's duty is to act in the best interest of their clients, which includes recommending investments that align with the clients' goals and risk tolerance, not necessarily presenting options with high risk of loss.

An Investment Consultant Is Recommending a Certain Class of Mutual