Performance Presentation Standards require that income and capital appreciation be presented in addition to total return when dealing with ________.
Answer(s): B
For real estate, PPS require that income and capital appreciation be presented in addition to total return.
A supervisor complies with Standard III (E) by establishing and enforcing ________ to prevent violations.
Answer(s): E
A supervisor complies with Standard III (E) by identifying situations in which legal violations or violations of the Code and Standards are likely to occur and establishing and enforcing compliance procedures to prevent such violations.
Which of the following are characteristics of material nonpublic information?
Answer(s): C
Information is "material" if its disclosure would be likely to have an impact on the price of a security or if reasonable investors would want to know the information before making an investment decision. In other words, information is material if it would significantly alter the total mix of information currently available regarding a security. Information is "nonpublic" until it has been disseminated to the marketplace in general and investors have had an opportunity to react to the information.
According to the AIMR-Performance Presentation Standards, ________ must be used when calculating investment performance.
Answer(s): D
Total return, including realized and unrealized gains plus income, must be used when calculating investment performance. Portfolios must not be switched from one composite to another unlessdocumented changes in client guidelines make switching appropriate. This is a requirement for calculation of returns.
Standard V (B) deals with
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.
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