CFA Level I sample question

CFA Level I Standard I(C) Misrepresentation question

Ethical and Professional Standards / Standard I(C) Misrepresentation

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Standard I(C) Misrepresentation sample question

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Ethical and Professional Standards

Standard I(C) Misrepresentation

A wealth adviser tells prospects, 'Our capital preservation strategy has never had a negative calendar year; if you hire us, your principal will be protected.' The strategy uses investment-grade bonds and cash equivalents but has no formal guarantee from a bank or insurer. The statement is least likely acceptable because:

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