Explanation

Dempsey's actions violate the Standard regarding performance presentation because:

• CFA Institute Standard I(C) - Misrepresentation requires that members must not knowingly make any misrepresentations relating to investment analysis, recommendations, or actions
• CFA Institute Standard III(D) - Performance Presentation requires that members must not misrepresent their performance record
• Key violation: Dempsey failed to disclose that the 10-year performance results were partially simulated (7 years of simulated results + 3 years of actual results)
• Required disclosure: When presenting simulated or hypothetical performance results, members must clearly disclose that the results are not actual performance and explain the limitations of such simulations
• Rationale: Even though Dempsey used the same model and methodology, the fact that 70% of the performance period is simulated requires clear and prominent disclosure to avoid misleading potential investors

Correct Answer: C - Yes, because he does not indicate that performance results are partially simulated