CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Larry Tolpert is an investment manager at a medium-sized investment management firm. Larry is giving a presentation to a group of prospective clients and makes the following comments about composite construction. Which of the following statements made by Larry in relation to composite construction are NOT correct?
A. Terminated portfolios may be excluded from the historical record.
B. Portfolios must not be switched from one composite to another unless this is documented by changes to the client guidelines or a redefinition of the composite.
C. Terminated portfolios must be included in the historical record up to the last full measurement period that the portfolio was under management.
Explanation: Terminated portfolios must be included in the historical record up to the last full measurement period that the portfolio was under management. Terminated portfolios may NOT be excluded in the historical record.

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