A registered representative handling a fiduciary account must be aware of the fact that:.

Investment decisions must be made in accordance with the prudent investor rule .

The Uniform Prudent Investor Act of 1994 displays the rules. Speculative positions are forbidden. Margin Trading is authorized only if allowed by beneficiary of account. Fiduciaries can charge reasonable fees for their service but may not be compensated as a share of profits.

Explanation:

answer; /// the above statement is (true);

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.