AIMR-PPS | CFA® Level 1 Exam Question | Test Prep

AIMR-PPS

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Question

In reference to AIMR-PPS, which of the following is/are true?

I. If the valuation of an investment asset is not based on current market value, it should not be included in total assets to which PPS are being applied.

II. Composites cannot not be presented as being in compliance unless all the firm'squalifying portfolios are accounted for in at least one composite defined according tosimilar strategy or investment objective.

III. A subsidiary may claim to be in compliance with the PPS even if the parent firm is not.

Answers

Explanations

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A. B. C. D.

A

Assets to which AIMR-PPS cannot be applied are not to be considered while considering compliance. For example, investment instruments like the GIC whose valuation is not based on market conditions, must be excluded.

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