THE CALCULATION POLICY DISCLOSURES MADE IN EXHIBIT 2

4. - CFA 2018 EXAM LEVEL 3 DA4387 LEVEL III CFA MOCK EXAM 2018 AFTERNOON A
CFA 2018 EXAM LEVEL 3 DA4387 LEVEL III CFA MOCK EXAM 2018 AFTERNOON A

4. The calculation policy disclosures made in Exhibit 2:

A. comply with GIPS.

B. fail to comply with GIPS because firms must revalue portfolios whenever an external cash

flow occurs, regardless of the size of the cash flow.

C. fail to comply with GIPS since GIPS do not define a large cash flow as a cash flow

comprising at least 5% of the NAV of the fund at the time of the cash flow.