What do you think are the ethical limits that managers should observe when taking risk with other people’s money?

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Business Finance

Financial Manager course. Discussion question. 250+ words and at least 1 reference required. APA/MLA Format not required.

Risk is a major concern of almost all investors. When shareholders invest their money in a firm, they expect managers to take risk with those funds. What do you think are the ethical limits that managers should observe when taking risk with other people’s money? You may also consider this question considering an investment in a mutual fund, therefore, you would be discussing the mutual fund manager’s role. You may also discuss what responsibility the investor bears.