Ethical and Professional Standards Q139
139Which of the following is least likely a misleading practice often encountered in investment firms?
- A
Selecting all portfolios while presenting the firm’s investment results for a specific mandate.
- B
Selecting a top-performing portfolio to represent the firm’s overall investment results for a specific mandate.
- C
Selecting all portfolios for a selected time period during which the mandate outperformed its benchmark.
- Option : A
- Explanation : Selecting top-performing portfolios is a misleading practice known as representative accounts. Presenting performance for a selected time period when the mandate outperformed the benchmark is also a misleading practice.
