Ethical and Professional Standards Q112

112Samina Haq a CFA candidate, works for Superior Trust Company. While reviewing the performance of one of the trust funds, she finds out that the trust fund has on an average performed at 5% for the last three years yet the brochure of her fund advertises an annual compound growth rate of 20%, which happened only in the past year. It also boasts of a consistent increment in the investment value above the entire market which also took place during last year. Haq‟s highest priority in avoiding a violation of the CFA Institute Standards of Professional Conduct is to:

Option : A
Explanation : According to Standard III(D) Performance Presentation Haq needs to correct the calculation and length of time specifying the performance of her trust fund.

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