The prudent investor rule requires __________.
A)executives of companies to avoid investing in options of companies by which they are employed
B)executives of companies to disclose their transactions in stocks of companies by which they are employed
C)professional investors who manage money for others to avoid all risky investments
D)professional investors who manage money for others to constrain their investments to those that would have been approved by the prudent investor
E)none of the above

Question

Quizplus · Accepted Answer

The prudent investor rule mandates that professional investors who manage funds for others must limit their investments to those that would have been approved by a prudent investor. They must exercise caution and refrain from risky investments.

The Prudent Investor Rule Requires __________