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Question:

Martha Graham, CFA, is a portfolio manager. She is very bullish on the stock of ABC Ltd. She adds the stock to all portfolios under her management such that the stock comprises 10% of each portfolio. Graham is most likely in violation of:

A Standard III (C): Suitability.
Explaination

Graham purchases the stock for all her clients without thinking about the suitability of the investment for each individual client’s portfolio.