If an investment adviser tells a client that a stock has doubled in the past year and, even though past performance is no assurance of future results, he is sure it will double, this statement is:
A) prohibited because the investment is not suitable for the client.
B) permissible due to the disclaimer of future performance.
C) permissible if the adviser has performed due diligence on the stock.
D) prohibited as a likely exaggeration.
Answer: Prohibited as a likely exaggeration.