What are the problems the proposal creates

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Geoff Whitman, a portfolio analyst for Adams Trust Company, manages the account of Carol Cochran, a client. Whitman is paid a salary by his employer, and Cochran pays the trust company a standard fee based on the market value of assets in her portfolio. Cochran proposes to Whitman that "any year that my portfolio achieves at least a 15% return before taxes, you and your wife can fly to Monaco at my expense and use my condominium during the third week of January."

Question 1: What are the problems this proposal creates? Are there any circumstances that would allow Whitman to accept this?

Reference no: EM132538857

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