1. SRI funds normally do not exclude:

gambling

bars and clubs

nuclear power

defence

2.

As support for the sales effort of her corporate bond department, Lindsey Warner offers credit guidance to purchasers of fixed-income securities.

Her compensation is closely linked to the performance of the corporate bond department.

Near the quarters end, Warners firm has a large inventory position in the bonds of Milton, Ltd., and has been unable to sell the bonds because of Miltons recent announcement of an operating problem. Salespeople have asked her to contact large clients to push the bonds.

What should Warner do?

Warner should insist on an instruction to push the bonds in writing

She should not push the bonds unless she is able to justify that the market price has already adjusted for the operating problem

She should warn clients informally that that bonds may be overvalued

She should make a judgment on how aware buyers are of the operational problem