Monday, November 10, 2008


Bob Hatfield, CFA, has his own money management firm with two clients. The accounts of the two clients are equal in value. One of the clients gets married and the assets of the new spouse and the client are combined. With the larger portfolio of the now married client, Hatfield determines that they can assume a higher level of risk and begins a change in the policy concerning that portfolio. Which of the following would violate Standard III(C), Suitability?
A)Assess the time horizon of the newly married client and his spouse.
B)Assess the return objectives of the newly married client and his spouse.
C)Notify the client of the change in policy and why he is enacting it.
D)Implement a similar policy for the other client who did not just get married.
answer: D

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