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Answer: Disclose the use of simulated results when model performance is presented.
According to Standard III (D), Performance Presentation, members and candidates must disclose when performance results are simulated or based on model outcomes. This ensures transparency and compliance with ethical standards. Options A and B are incorrect because terminated accounts should be included (not excluded) and a weighted composite of similar portfolios should be used (not a single representative account).
Author: LeetQuiz Editorial Team
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Which of the following procedures is recommended for compliance with the Standard on performance presentation?
A
Exclude terminated accounts from the performance presentation.
B
Utilize a single representative account for each investment mandate.
C
Disclose the use of simulated results when model performance is presented.