Which of the following is/are required by AIMR-PPS with regards to calculation of returns?
I. For leveraged portfolios, the stated returns must be on an "all-cash" basis, removing the effects of debt financing.
II. Performance must be based on "gross" returns i.e. before necessary expenses like brokerage and SEC fees.
III. Composites must be asset-weighted using beginning-of-period weights.
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A. B. C. D.D
For leveraged portfolios, PPS require a statement of performance using actual returns as well as on an "all-cash" basis (i.e. without leverage). Performance must be based on returns after trading expenses like brokerage and SEC fees. Composites must be asset-weighted using beginning-of-period weights.