CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Adam Ames, CFA, develops marketing materials for an investment fund he founded three years ago. The materials show the 3-, 2- and 1-year returns for the fund. He includes a footnote that states in small print "Past performance does not guarantee future returns." He also includes a separate sheet showing the most recent semi-annual and quarterly returns, which notes that they have been neither audited nor verified. Has Ames most likely violated any CFA Institute Standards of Professional Conduct?
A. Yes, because he did not adhere to the GIPS.
B. Yes, because he included un-audited and unverified results.
C. No
Explanation: The standards require members to make reasonable efforts to make sure performance information is fair, accurate, and complete. The standards do not require compliance with Global Investment Performance Standards (GIPS), auditing, or verification requirements.

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