Identify at least one ethical dilemma present in the professional asset management industry. Cite a specific example of a possible dilemma currently being experienced.
The professional asset management industry faces a number of ethical dilemmas. One such dilemma is based on their compensation scheme. The investment managers typically get paid on a portion of their returns. For example, if an investment manager makes 30% for a person, then he gets a portion of that. If the fund manager loses money, then he does not get anything. The dilemma lies in the fact that because of this compensation scheme, the investment manager would always want to invest in high risk assets which would ...
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