Convertible and Other Hybrid Securities

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Question

Convertible and other hybrid securities

Answers

A. are never included in composites with conventional securities.

B. are managed separately and treatment must be disclosed in performance reporting.

C. are not assets to which the Standards are applicable.

D. must be treated consistently across and within composites. D

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Explanations

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A. B. C. D.

Explanation

Convertible and other hybrid securities must be treated consistently across and within composites. Portfolios must not be switched from one composite to another unless documented changes in client guidelines make switching appropriate. This is a requirement for creation and maintenance of composites.

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