ExamTopics Logo
Mail Us[email protected]
Menu
Test-Prep Discussions
exam questions

Exam CFA® Level 1 All Questions

View all questions & answers for the CFA® Level 1 exam
Go to Exam

Exam CFA® Level 1 topic 1 question 41 discussion

Actual exam question from Test Prep's CFA® Level 1
Question #: 41
Topic #: 1
[All CFA® Level 1 Questions]

If a firm uses discretionary leverage, it must present performance using:

  • A. all-cash basis i.e. removing leverage effects.
  • B. both actual returns and all-cash basis.
  • C. none of these answers.
  • D. actual returns.
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️
For discretionary leverage, both actual returns and all-cash returns must be presented.
by KAla7223 at Jan. 30, 2023, 5:27 a.m.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
Submit Cancel
KAla7223
2 years ago
If a firm uses discretionary leverage, it must present performance using the all-cash basis method. This means that the performance should be presented without the effects of leverage, so that the clients can clearly see the returns from the investments. The actual returns including the effects of leverage should also be disclosed.
upvoted 1 times
...
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
exam
Someone Bought Contributor Access for:
SY0-701
London, 1 minute ago