A 27-year-old client is in the lowest tax bracket and seeks an aggressive long-term growth investment. If his investment adviser representative recommends a high-rated general obligation municipal bond, the IAR has:

A 27-year-old client is in the lowest tax bracket and seeks an aggressive long-term growth investment. If his investment adviser representative recommends a high-rated general obligation municipal bond, the IAR has:



A) made an unsuitable recommendation, since a municipal revenue bond would have been more appropriate.

B) made an unsuitable recommendation based on the client's needs and objectives.

C) recommended a suitable investment because GOs are good long-term investments.

D) committed no violation because municipal bonds are well suited for the market's volatility.



Answer: B


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