Sofia Is an Investment Advisor and Wants to Recommend a Stock

question 110

Multiple Choice

Sofia is an investment advisor and wants to recommend a stock she happens to own. How should Sofia best deal with this potential conflict of interest?

• A) She should not make the recommendation.
• B) She should make a negative recommendation.
• C) She should disclose the fact that she owns the stock while making the recommendation.
• D) She should make a positive recommendation and then sell the stock.

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Definitions:

Services Society

A society where the economy is significantly driven by the provision of services rather than the production of goods.

Freshwater

Refers to water bodies like lakes, rivers, and ponds that have low salt concentrations compared to seawater.

Scarce

In short supply; a resource is scarce when there is not enough of the resource available to satisfy all the various ways a society wants to use it.

Physical Capital

The tangible assets that are used in the production of goods and services, including buildings, machinery, and equipment.