Answer: require firms to adhere to certain calculation methodologies to allow for comparability across firms.

## Explanation The correct answer is **B**. **Key Concept Analysis:** **Option A (Incorrect):** The GIPS standards do NOT address every aspect of performance measurement. They provide a standardized framework for calculating and presenting investment performance, but they don't cover all aspects of performance measurement. **Option B (Correct):** This is a fundamental principle of GIPS standards. The Global Investment Performance Standards require firms to adhere to specific calculation methodologies to ensure comparability across different firms. This standardization allows investors to make meaningful comparisons between investment managers. **Option C (Incorrect):** GIPS standards require the inclusion of all **discretionary** portfolios in composites, but **non-discretionary** portfolios are specifically excluded from composites. Non-discretionary accounts are those where the firm does not have full discretion over investment decisions. **Additional Context:** - GIPS standards are voluntary ethical standards for investment managers - They aim to ensure full disclosure and fair representation of investment performance - Standards cover areas like composite construction, calculation methodology, and presentation - Compliance with GIPS helps establish credibility and comparability in the global investment industry

Author: LeetQuiz .