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Free CFA-Level-I Exam Braindumps (page: 108)

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PDF with 3963 Questions

Standard V (B) deals with

  1. independence and objectivity.
  2. performance presentation.
  3. preservation of confidentiality.
  4. insider information.
  5. fair dealing.
  6. research report.

Answer(s): B

Explanation:

The purpose of Standard V (B) is to state the responsibility of AIMR members to avoid misrepresentation of the investment performance and encourages full disclosure of investment performance data to clients and client prospects.



The ________ assumption must be disclosed if results are presented after taxes.

  1. tax rate
  2. trade
  3. composite
  4. selection
  5. settlement-date

Answer(s): A

Explanation:

To be in compliance with the PPS, a firm's presentation of its investment performance must disclose the tax rate information.



Performance results for a portfolio need to be presented with cash, ________ equivalents, or substitute assets.

  1. composite
  2. multiple
  3. cash
  4. average

Answer(s): C

Explanation:

Returns from cash and cash equivalents held in portfolios must be included in return calculations and the cash and cash equivalents must be included in the portfolio amount (total assets) on which the return is calculated.



According to the AIMR-PPS, plan sponsors, consultants and software vendors

  1. are exempt from any of the Standards.
  2. are directly responsible for ensuring the companies they employ are in compliance with the Standards.
  3. are held accountable to the Standards in the same way as AIMR Members, Charterholders and Candidates.
  4. cannot make a claim of compliance unless these entities actually manage the assets for which they are making the claim of compliance.

Answer(s): D

Explanation:

Plan sponsors, consultants and software vendors cannot make a claim of compliance unless these entities actually manage the assets for which they are making the claim of compliance. These groups can claim to endorse the Standards and/or require that the investment management firms they employ, from which they solicit information, or to which they sell be in compliance with the Standards.






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