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Answer: both misrepresentation and performance presentation.
According to **Standard I(C), Misrepresentation**, members or candidates must not knowingly omit or misrepresent information or create a false impression of an organization or security. By showcasing only the best-performing 'balanced' account without disclosing that half of the firm's similar accounts underperformed, Lumunon violated this standard. Additionally, **Standard III(D), Performance Presentation**, requires members and candidates to avoid misstating performance or misleading clients about investment results. Lumunon's actions also breach this standard by not providing a complete and accurate performance presentation. Thus, the correct answer is **C**, as both standards were violated.
Author: LeetQuiz Editorial Team
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Johnny Lumunon, CFA, presents the investment performance of a 'balanced' account to prospective clients, highlighting its outperformance against the benchmark over the past decade. However, he fails to disclose that this account is the top performer and that half of the firm's 'balanced' accounts underperformed the benchmark during the same period. Lumunon has most likely violated the Standard(s) relating to:
A
misrepresentation only.
B
performance presentation only.
C
both misrepresentation and performance presentation.
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