Ethical and Professional Standards Q155
0. Which of the following statements is most likely correct?
- A
All actual, discretionary, fee-paying portfolios must be included in at least one composite defined by investment mandate, objective, or strategy.
- B
Only actual, non-discretionary, non-fee-paying portfolios must be included in at least one composite defined by investment mandate, objective, or strategy.
- C
Only actual, discretionary, non-fee-paying portfolios must be included in at least one composite defined by investment mandate, objective, or strategy
- Option : A
- Explanation : One of the key features of GIPS standards is that all actual, discretionary, fee-paying portfolios must be included in at least one composite defined by investment mandate, objective, or strategy in order to prevent firms from cherry-picking their best performance.
