Composite Returns and Foreign Withholding Taxes | CFA Level 1 Exam Prep

Composite Returns on International Investments

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Question

Performance Presentation Standards require the disclosure of whether composite returns on international investments are ________ of foreign withholding taxes.

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A. B. C. D.

Explanation

The performance presentation must disclose whether composites and benchmarks are presented gross or net of withholding taxes on dividends, interest and capital gains; if net, the assumed tax rate for both the composite and the benchmark.