CFA Practice Question

CFA Practice Question

Ella Hill is an investment advisor. To her clients, she recommends XQP - an equity fund - that takes aggressive positions. Over the years, XQP's average return has beaten market indices, albeit with significantly higher volatility. Hill's clients are young professionals accumulating money for retirement more than two decades away. Jason Turner is a retired professor who supplements his pension by drawing down his savings. Hill recommends that Turner invest his savings with XQP. By making the recommendation to Turner, Hill has violated the Standards relating to:
A. only communication with prospective clients.
B. suitability of investments and communication with prospective clients.
C. only suitability of investments.
Explanation: The communication was fine, however the investment is not suitable.

User Contributed Comments 1

User Comment
Mikehuynh Hill violates suitability not communication since he did not hide any info
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