Mutual fund representatives try to maximize the returns on their clients' portfolios, so they can earn more commission.However, they may also be on a lookout for making trades, which will earn them the most commission even if it might not be best solution for their clients.This is an example of a conflict of interest.

Question

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A conflict of interest arises when the financial interests of a representative interfere with their professional judgment and decisions for their clients. In the case of mutual fund representatives, their desire to earn more commission may lead them to make trades that are not necessarily the best solution for their clients.

Mutual Fund Representatives Try to Maximize the Returns on Their