Answer: Statement 2 only

## Explanation **Statement 2 only** - Under Standard III(D) Performance Presentation: - **Statement 1 is NOT consistent**: Terminated accounts cannot be excluded from performance history unless they are excluded for legitimate reasons (such as being non-discretionary or not representative). Simply excluding terminated accounts because they performed poorly would be misleading and violate the Standard. - **Statement 2 IS consistent**: Presenting performance using a weighted composite of similar portfolios is acceptable and actually encouraged under the GIPS standards. Composites help provide a more representative picture of performance for similar investment strategies or mandates. Therefore, only Statement 2 is consistent with the performance presentation standards.

Author: LeetQuiz Editorial Team