You are the owner of a portfolio of common stocks. Your stock
broker calls you on the phone and tells you that you have a
number of stocks that have recently declined in value. He
recommends that you sell these and invest the funds in a group
of other stocks recommended as "future strong performers" by
the research department of his company, an internationally known
brokerage firm. Ignoring possible tax considerations, you should
1. decline your broker's suggestion.
2. follow your broker's advice, since that
is what you are paying him for.
Choose the correct option.