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An Investment Consultant Is Recommending a Certain Class of Mutual

question 157

True/False

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 ethical practice to explain to the clienteles what the basis of her probability estimate is.


Definitions:

Healthcare Benefits

Refers to the health-related support and insurance plans provided by an employer to their employees as part of their compensation package.

Restricted Stock Option Plans

These are employee benefit plans that grant employees stock options with restrictions on sale or transfer until certain conditions, like vesting, are met.

Family-Friendly Benefits

A program that helps employees achieve better work–life balance.

Employee Benefits

Nonmonetary forms of compensation such as health benefits and retirement plans.

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