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Basic Question 7 of 9
According to fiduciary duty standards set by ERISA, ______.
B. managers are expected to diversify to reduce risk of loss
C. pension fund managers act solely for the benefit of the plan sponsor
A. every individual investment must be suitable on its own
B. managers are expected to diversify to reduce risk of loss
C. pension fund managers act solely for the benefit of the plan sponsor
User Contributed Comments 6
| User | Comment |
|---|---|
| danlan | How about A? |
| gord | Every individual investment may not be suitable on it's own but may be suitable in the context of the entire portfolio when considering diversification, correclation, etc... |
| wuyi | ERISA: Employee Retirement Income Security Act |
| TammTamm | A is not correct because it's not every investment on it's own, it's in reference to the entire portfolio. |
| bantoo | Yuppppp! |
| raffrobb | To Diversify is a recommended procedure for compliance, I think. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
CFA® 2025 Level I Curriculum, Volume 6, Module 3.