CFA Practice Question

There are 361 practice questions for this study session.

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

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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.