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 clients based on its exceptionally high probability of gain. It is an ethical practice to explain to clients what the basis of her probability estimate is.

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Definitions:

Self-Actualization Needs

The highest level in Maslow's hierarchy, referring to the realization of one's potential and the pursuit of personal growth and peak experiences.

Positive Self-Regard Needs

Positive Self-Regard Needs involve the desire for acceptance, self-esteem, and the positive evaluation from oneself and others.

Threats

Statements or actions intended to cause fear or harm to an individual or group, often used to intimidate or manipulate behavior.

Defense Mechanisms

Mental techniques employed by the subconscious mind to manipulate, deny, or alter reality in order to shield against feelings of worry and impermissible desires.