Skip to content

CFA Level I · CFA Level I Exam · Guidance for Standard I: Professionalism

A performance analyst at an asset manager finds that a fund has strayed from its mandate. The head of the fund asks her to change the composite benchmark so that the fund's relative results look better. Under Standard I(B), the analyst should most appropriately:

She should complete the performance calculation and analysis faithfully, without letting the request influence her. Standard I(B) guidance states that internal or external influences, such as requests to alter composite benchmarks because of negative results, must not affect the independence and objectivity of performance analysis.

  1. Achange the benchmark if senior management approves the request
  2. Bcomplete the performance calculation and analysis faithfully without letting the request affect herCorrect
  3. Cchange the benchmark and add a footnote describing the revision

Explanation

The guidance requires that members not allow internal or external influences to affect their independence and objectivity as they faithfully complete performance calculation and analysis responsibilities. Approval by management or a footnote does not make an outcome-driven change objective.

Did you get it right without looking?

One question tells you little. A timed set on Guidance for Standard I: Professionalism shows your real accuracy, how long you take and where you lose marks.

Practise Guidance for Standard I: ProfessionalismFree diagnostic mock

More Guidance for Standard I: Professionalism questions