CFA Practice Question

CFA Practice Question

Which of the following is incorrect with regard to suitability of investments? Members and candidates:
A. when advising a client, should judge suitability in context of total portfolio.
B. when managing a portfolio to a specific mandate, may depart from the stated objectives if their research shows that remaining consistent with the mandate would expose the client to more risk than the manager feels is appropriate.
C. when advising a client, should make a reasonable enquiry into the client's investment experience.
Explanation: A manager cannot 'depart from the stated objectives' because of what the 'manager feels is appropriate'. The other two options are requirements for determining suitability.

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