Standard V (B) Misrepresentation of a Member's Record

A

Standard V (B) addresses any practice that would lead to misrepresentation of a member's record, whether the practice involves performance presentation or performance measurement.

Standard V (B) of the CFA® Level 1 curriculum addresses any practice that would lead to misrepresentation of a member's record, whether the practice involves performance presentation or performance measurement.

To understand the meaning of the two terms, let's break them down:

1. Performance Presentation: Performance presentation refers to the way in which investment performance is reported or communicated to clients, potential clients, or other stakeholders. It includes the methods, calculations, and formats used to present the investment performance information. This can include various aspects such as the time period being measured, the inclusion or exclusion of certain assets or transactions, and the use of benchmarks for comparison.

2. Performance Measurement: Performance measurement involves the process of quantifying the investment performance of a portfolio or investment strategy. It includes the calculation of returns, risk-adjusted measures, and other performance metrics to evaluate the success or failure of an investment approach. Performance measurement is crucial for assessing the effectiveness of investment decisions and comparing performance against benchmarks or peers.

Standard V (B) aims to ensure that CFA® charterholders and candidates do not engage in any practices that would misrepresent their investment performance record. This standard promotes ethical behavior, transparency, and accuracy in the reporting and measurement of investment performance.

Therefore, the correct answer to the question is:

A. presentation; measurement