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Answer: Yes, by projecting a specific return of 5% over the next three years.
According to **Standard III(D), Performance Presentation**, members and candidates must not imply or guarantee a specific rate of return based on past performance. Dixon's statement about expecting a 5% return over the next three years violates this standard, as it could mislead clients into believing the return is assured. While offering additional information upon request is compliant, the projection of returns is not. This question tests understanding of ethical guidelines regarding performance communication.
Author: LeetQuiz Editorial Team
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Tom Dixon, CFA, provides a brief summary of his investment performance to his clients, indicating that further details are available upon request. He also informs them of an expected return of 5% over the next three years based on his track record. Has Dixon most likely violated the CFA Institute Standards of Professional Conduct?
A
No, Dixon has not violated any standards.
B
Yes, by offering additional information upon request.
C
Yes, by projecting a specific return of 5% over the next three years.
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