CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

GIPS standards require that ______

I. portfolio valuations must be based on book values.
II. unrealized gains should not be used in the calculation of portfolio returns.
III. actual trading expenses should be deduced when calculating returns.
Correct Answer: III only

I. Portfolio valuations should be based on market values.
II. Total returns, which include realized and unrealized gains and losses plus income, should be used in the calculation of portfolio returns.
III. Actual, not estimated, trading expenses should be deducted when calculating returns.

User Contributed Comments 2

User Comment
omya portfolio valuations should be based on market values.
realised n unrealised loss n gains both should be included.
only actual trading expenses should be deducted.
tybe0012 the reduction of trading expenses provides a clearer picture of the actual performance of a portfolio
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