- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 4. Introduction to the Global Investment Performance Standards (GIPS)
- Subject 2. The Key Concepts of the GIPS Standards
CFA Practice Question
The GIPS standards require that ______
II. benchmarks should be selected after the fact.
III. composites should be created on an ex-ante basis.
IV. composites should be created after the fact.
I. benchmarks should be selected on an ex-ante basis.
II. benchmarks should be selected after the fact.
III. composites should be created on an ex-ante basis.
IV. composites should be created after the fact.
Correct Answer: I and III
This is to ensure the integrity of input data.
User Contributed Comments 5
| User | Comment |
|---|---|
| omya | Benchmarks n composites should both be selected ex ante basis... |
| nabilhjeily | what do we mean by benchmarks here |
| johntan1979 | Benches with marks on them |
| abellochs | good one |
| Kennyk11 | Ex ante literally means "before the event(fact)" in Latin. This is so that no one can have an unfair advantage since everybody is on the same boat before the event occurs. http://www.investopedia.com/terms/e/exante.asp |