) BASED ON EXHIBIT 1 AND THE NOTES FOLLOWING THE EXHIBIT, ARCADIA IS LEAST LIKELY IN COMPLIANCE WITH THE GIPS STANDARDS WITH REGARD TO THE

5.) Based on Exhibit 1 and the notes following the exhibit, Arcadia is least likely in

compliance with the GIPS standards with regard to the:

A.

performance presentation.

B.

measure of internal dispersion.

C.

performance record.

Answer = C

Arcadia is required by the GIPS standards to present five years of performance because

the composite has been in existence for that period. The small-cap composite was

started on 31 December 2007. For each composite presented to be GIPS compliant, the

Standards require that firms show at least 5 years of annual performance (less if the

firm or composite has been in existence for a shorter period) and then the performance

record must be extended each year until 10 years of results have been presented.

“Overview of the Global Investment Performance Standards,” Phillip Lawton

Sections 3.11, 3.12