Ethical and Professional Standards Q66

66Raul Devgan, CFA, is a portfolio manager for Khadri Investments. He manages a high growth equity fund known as SmartMoney. Devgan reports the performance of SmartMoney in its quarterly newsletter and states, “SmartMoney was able to surpass its benchmark, S&P BSE by 0.20%. However, this type of performance should not be expected from the fund always.” Adrik Vanyusha is a client of Devgan and follows the performance of SmartMoney closely. Upon receiving the newsletter, he immediately contacts Devgan and informs him that the fund never exceeded its benchmark but in reality had underperformed. Devgan recalculates the results after the complaint, which confirm Vanyusha‟s claim. He sends Vanyusha the correct results and blames the discrepancy on typographical error. Devgan least likely violates the Standard relating to:

Option : C
Explanation : The Standard relating to Independence & Objectivity has not been violated because Devgan has not received any gifts, benefits or consideration to compromise his independence and objectivity.

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