What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Ethical and Professional Standards
Global Investment Performance Standards (GIPS) practice questions
Global Investment Performance Standards (GIPS) is part of CFA Level I Ethical and Professional Standards. Ethics questions test judgment under the Code and Standards, especially duties to clients, employers, markets, and the CFA Program. Use this page to review the controlling ideas, then work through 3 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Ethical and Professional Standards
Global Investment Performance Standards (GIPS)
A portfolio manager says, 'I personally comply with GIPS because my model account includes all winning trades and excludes client accounts with restrictions.' The manager's statement is least accurate because:
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Global Investment Performance Standards (GIPS)
A diversified investment firm states, 'Our equity division complies with GIPS, although the firm excludes its fixed-income and private-wealth businesses from the definition of the firm.' The statement is most likely incorrect because:
View sampleEthical and Professional Standards
Global Investment Performance Standards (GIPS)
A firm states in marketing: 'Our composite is GIPS verified, so the reported return is certified accurate and future returns should be comparable.' An independent verifier reviewed the firm's GIPS policies and procedures firm-wide but did NOT verify that statement. The most accurate conclusion is that the marketing statement is misleading because verification:
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