What duty to clients includes loyalty, prudence, and care?

The duty that includes loyalty, prudence, and care is classified as the duty of suitability. This duty requires investment professionals to act in the best interests of their clients by ensuring that investment recommendations are appropriate for the clients' financial situations, objectives, and risk tolerances.

The principle of loyalty emphasizes that the investment professional must prioritize the client's interests above their own, while prudence involves exercising care and diligence in making investment decisions. Similarly, the aspect of care reflects the expectation that the advisor will ensure that investments are suitable and beneficial for the client.

Each of these components forms the foundation of a fiduciary duty, which obligates the advisor to provide a level of care that protects the client’s interests. In the context of the CFA exam, understanding this duty is crucial, as it underscores the ethical obligations that financial professionals must adhere to when serving their clients.