In the following question, the explanation is “Asking someone to advertise only one years performance is unlikely to be representative since this constitutes a timeframe that is too short.” Now my question is that had one year been not mentioned, would the answer have been different? Also, the manager asks the clients to advertise about the performance specifically stating past one year. Isn’t this an objective fact and should the answer not be D? A money manager, who is a member of CFA Institute, suggests during phone calls to his clients that, I hope you will relay to your friends the great returns I earned for you this past year. The manager had generated above average returns in the past year. Is this a violation of Standard III(D), Performance Presentation? A) Yes, because the Standard forbids members asking their clients to say anything about how well the member has done. B) Yes, because the intended message fails the test of completeness as required under the standard. C) No, because the request was made orally and not in writing. D) Not if it is true. Your answer: D was incorrect. The correct answer was B) Yes, because the intended message fails the test of completeness as required under the standard. Standard III(D) requires that members communicate performance in a fair, accurate, and complete fashion, and covers both written and oral communication. Asking someone to advertise only one years performance is unlikely to be representative since this constitutes a timeframe that is too short.
Yes it is B based on “fair presentation”
what’s the point of answer this as this is already answered by the intial post. anyone else find it offensive that the answers are given in the same post that of a question?
“offensive” is a strong word. more like annoying good question regardless