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
Standard III(D) Performance Presentation practice questions
Standard III(D) Performance Presentation 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 5 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
Standard III(D) Performance Presentation
A firm advertises a composite that excludes terminated accounts with poor returns. The most direct violation is:
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Standard III(D) Performance Presentation
A manager shows backtested returns without labeling them as simulated. The most likely issue is:
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Standard III(D) Performance Presentation
A manager presents a five-year record generated at her prior employer as the record of her new boutique. She personally managed the strategy, and records exist at the prior firm. The presentation is least appropriate because:
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Standard III(D) Performance Presentation
A manager markets a balanced strategy by showing only the three accounts that outperformed the benchmark over five years and states that they are 'examples of our strategy.' The omitted accounts used the same mandate but underperformed. The manager most likely violates the Standards because the presentation:
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Standard III(D) Performance Presentation
A quant team markets a new strategy using ten years of back-tested returns labeled 'model history.' The presentation excludes transaction costs and does NOT disclose that the strategy was created after observing the historical data. The most accurate conclusion is that the presentation:
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