) IN THE FOOTNOTE OF THE PROMOTIONAL MATERIAL ABOUT THE PERFORMANCE...
3.) In the footnote of the promotional material about the performance of his portfolio
trading strategy, Litman is least likely in compliance with the CFA Institute Standards of
Professional Conduct with respect to:
A.
results.
B.
fees.
C.
taxes.
Answer = A
Standard III(D)–Performance Presentation allows the use of simulated performance
analysis as long as it is clearly stated that the results are simulated. Litman uses
historical data over 20 years, but he has only managed actual accounts for friends for 10
years. Consequently, he should have stated in the footnote that the results were
simulated.
“Guidance for Standards I–VII,” CFA Institute
Standard III(D)