During a presentation to prospective clients Pappy Peters says 'If you invest your money with us, you will receive 14% annual returns, no problem.' Pappy has indeed delivered 17% returns the prior year, but over the last 5 years the return has averaged only 15%.

A. Pappy has not violated the Standards.
B. Pappy has only violated Standard III (C) Suitability.
C. Pappy has only violated Standard III (D) Performance Presentation.

Correct Answer: C

Can't make such claims about future performance. No reason to believe that investments made by Pappy would be unsuitable.