“For 12 years, you’ve been the financial advisor for an elderly man in his late 70s who is an active investor of his own portfolio and for a trust which will benefit his two children. In the last few months, you’ve noticed a subtle, yet marked change in his behavior. He has become increasingly forgetful, has become uncharacteristically argumentative, and seems to have difficulty understanding some very basic aspects of his transactions. He has asked you to invest a sizable portion of his portfolio and the trust in what you consider to be a very risky bond offering. You are frank about your misgivings. He blasts you and says that if you don’t buy the bonds, he’ll take his business elsewhere.”
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