IFC Exam Dumps | A dealing representative explains the past performance of a mutual fund to a potential client, discussing

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Question 125/202

A dealing representative explains the past performance of a mutual fund to a potential client, discussing the annual simple returns and compound returns that the fund had earned. She concluded by indicating she expects the fund's NAVPU was likely to rise at similar rates in the future, given the economic outlook. What unacceptable selling practice has occurred?

A. Representatives cannot comment upon the economic outlook

B. Representatives cannot discuss a fund's past performance

C. Representatives cannot quote a future purchase price

D. Representatives cannot promise NAVPU will increase by any amount

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Question 125/202

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