i am confused with question 6 of the CFA mock:
here is the extract:
In the first Foster Asset Management board meeting after the sale, Calvin Lim, CFA, the firm’s chief investment officer (CIO), stated, “My investment team recently added real estate investment trust (REITs) to our model portfolio to see what the impact would be on investment returns for our clients if we added them to their portfolios. But this asset class has a much higher risk profile than our normal allowable assets.” Foster added, “After we analyzed the impact of adding this new asset class to our model portfolio, we made the decision to add the real estate exposure to all of our client accounts. We found it is having a positive impact on portfolio returns and still complies with the firm’s performance measurement policy.”
the solution says that Lim was in violation
but for me, he was just testing the impact of adding this new asset class to the portfolios. There should be no violation if he tests a new allocation as it may lead to presenting it to the clients who may accept this change!
what do you think?