Recommendations & StrategiesCâu 59 / 110
An investment adviser recommending a strategy must ensure it is suitable. Which action best supports suitability?
a.Recommending the product paying the highest commission
b.Documenting the client's objectives, risk tolerance, and financial situation before advising
c.Applying the same portfolio to every client for consistency
d.Avoiding any discussion of risk to prevent client anxiety
Giải thích
Suitability requires understanding and documenting the client's objectives, risk tolerance, financial situation, and needs before making recommendations. A one-size-fits-all approach or one driven by compensation ignores individual circumstances. As a fiduciary, an adviser must also fully disclose risks.
Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
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- A step-up in cost basis at death generally means which of the following for inherited appreciated securities?
- An efficient frontier graph plots portfolios according to which two dimensions?
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Đội Ngũ Biên Tập PrepPass · Đối chiếu với NASAA Series 65 Investment Adviser Law Exam · Quy trình kiểm tra