Series 7 practice questionmediumMarketing and Prospecting — Suitability in Prospecting
A representative meets a prospect who expresses concern about market volatility and wants stable returns. Which product should the rep avoid recommending at this stage?
- AFixed annuities
- BLeveraged ETFs✓ Correct answer
- CU.S. Treasury notes
- DInvestment-grade corporate bonds
Explanation
Why B — Leveraged ETFs
Leveraged ETFs are high-risk, volatile products unsuitable for investors seeking stable returns and should not be recommended based solely on the prospect's stated preference.
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