If a firm advertises performance figures, CFA Institute standards require that all portfolios under management must be included in at least one composite measure of performance.

Question

Quizplus · Accepted Answer

CFA Institute standards require that when a firm advertises performance figures, it must include all actual, fee-paying, discretionary portfolios in at least one composite to prevent cherry-picking of successful portfolios and to ensure fair and accurate representation of performance to prospective clients.

If a Firm Advertises Performance Figures, CFA Institute Standards Require