An Investment Manager Enthusiastically Reports That His Client's Stock Portfolio

question 52

Multiple Choice

An investment manager enthusiastically reports that his client's stock portfolio has experienced 24 percent growth but does not reveal that the stock market as a whole grew by 32 percent during the same period.Which of the following ethical guidelines has the investment manager ignored?

• A)Clear and understandable expression of the idea
• B)Honest and fair expression of the idea
• C)Tactful and pleasant expression of the idea
• D)Graphical support that communicates facts accurately

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Definitions:

Conditional Sale Contracts

Conditional sale contracts are agreements where the sale of an asset or property is contingent upon certain conditions being met, often related to financing or inspection approvals.

Credit Sales

Transactions where goods or services are sold and payment is delayed, often creating accounts receivable.

Compounded Monthly

Interest calculation method that adds interest to the principal balance monthly, increasing the amount of subsequent interest.

Single Payment

A one-time transfer of money to settle a debt or purchase.