1. Samuel Porter works at a GIPS® compliant investment management firm. He constructs a
composite which includes discretionary, fee-paying accounts with value strategies and excludes
growth strategy accounts. Does the composite constructed by Samuel most likely meet the GIPS
criteria?
A. Yes
B. No, because he fails to include growth strategy accounts
C. No, because he fails to account for non-discretionary accounts
2. Which of the following is least likely to be a necessary requirement to claim GIPS®
compliance?
A. GIPS® must be applied on a firm-wide basis.
B. Firm must be defined as an investment firm. It cannot be a subsidiary or division as a
distinct business entity.
C. If a firm changes its organizations, historical composite results cannot be changed.
3. Which of the following are most likely to be accounted for to calculate the aggregate fair value
of the total firm assets on December 31, 2012?
I. Fee-Paying Accounts
II. Non-Fee-Paying Accounts
III. Discretionary Accounts
IV. Non-Discretionary Accounts
A. I and III only
B. I, II, and III only
C. I, II, III and IV.

Answers: SelectShow

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