CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

In terms of CFA Institute's Standards of Professional Conduct per Standard I (C) - Misrepresentation, which of the following statements are correct?

I. A misrepresentation is any untrue statement of a fact or any statement that is otherwise false or misleading.
II. This statement includes any statement that guarantees superior returns will be earned.
III. Members should avoid misrepresentations about their qualifications.
Correct Answer: I, II and III

User Contributed Comments 9

User Comment
aspazia II????
donpietro I agree with a doubt of aspazia...

II answer - "any untrue" is really ok ? As we can read in notes "this standard does not rule out correct statements that some investments re actually guaranted in some way wit guaranted returns..... "
Slothrop Perhaps II is correct because it is misrepresentation to guarantee a "superior" return, but not misrepresentation to guarantee "a" return on a security (for a government security, for example).
treas i agree wid slothrop
sanyukta superior is the wrong word here thats y 11 too is included
Shalva Superior returns can't be guaranteed, there only is some probability to earn such return
kforcfa missed II, any statement that guarantees superior returns. thus if you state about guaranteed return on treasury stock its ok, and if you state about SUPERIOR guaranteed return its violation? is SUPERIOR the key phrase here?
krisscfa Slothrop... is correct
ilgibe Think about structured products with explicit guarantees on capital.
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