Most money managers have a portion of their compensation


"Money Management" Please respond to the following:

  • Most money managers have a portion of their compensation tied to the performance of the portfolios they manage. Explain how this arrangement can create an ethical dilemma for the manager and suggest a way to ensure ethical behavior.
  • Evaluate the inherent risk of money management for both the investor and the manager. Suggest ways for these risks to be minimized.

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Finance Basics: Most money managers have a portion of their compensation
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