real estate , performance of composite with more than 5 protfolios must contain which internal dispersion A high and low annual TW return B range C standard deviation D interquartile range E any of above

A

A

Okay this I had ZERO clue… Explanation behind this? Why is it different for real estate?

This question definitely made me uncomfortable. Thought I was about done studying.

markCFAIL Wrote: ------------------------------------------------------- > This question definitely made me uncomfortable. > Thought I was about done studying. This is from the official GIPS. I am not even 100% it is in the book. 6.A.16. The following items MUST be presented in each COMPLIANT PRESENTATION: a. As a measure of INTERNAL DISPERSION, high and low annual TIME-WEIGHTED RATES OF RETURN for the individual PORTFOLIOS in the COMPOSITE. If the COMPOSITE contains five or fewer PORTFOLIOS for the full year, a measure of INTERNAL DISPERSION is not REQUIRED. b. As of each annual period end, the percentage of COMPOSITE assets valued using an EXTERNAL VALUATION during the annual period.

A

This is only for real estate right? For everything else you have the option of 1) Equal weighted 2) Asset weighted 3) high low range 4) Intequartile range 5) range

A quick question: Is internal dispersion required for Private Equity?

answer is A I don’t notice any internal dispersion required for Private Equity

Soccertom9 Wrote: ------------------------------------------------------- > This is only for real estate right? For > everything else you have the option of > > 1) Equal weighted > 2) Asset weighted > 3) high low range > 4) Intequartile range > 5) range Incorrect. You can use any measure you want for regular composites: “Note that the GIPS standards do not limit firms to using one of the measures of internal dispersion introduced above. A firm may prefer another way of expressing composite dispersion. The method chosen should, however, fairly represent the range of returns for each annual period.” (CFAI, Volume 6, page. 317)

answer is A high and low is required for real estate