1、A good way to describe the Global Investment Performance Standards (GIPS) is a:

A)   legal doctrine with criminal penalties.

B)   screening mechanism for determining appropriate international investments.

C)   common yardstick for means of comparison.

D)   means of assessing stock markets in different parts of the world.

2、As countries adopt the Global Investment Performance Standards (GIPS), which of the following is least likely to occur?

A)   The trend toward cross country investments will decline.

B)   Competition in the global investment industry will be enhanced.

C)   Existing and potential clients will be able to make fair and unambiguous comparisons among investment firms.

D)   Investment consultants will be better equipped to fairly assess historical investment performance.

3.Which of the following statements regarding the Global Investment Performance Standards (GIPS) is TRUE? The GIPS standards:

A)   are considered to be the minimum global standard for historical performance presentation.

B)    are designed to supplement local standards of historical performance presentation in countries around the world.

C)   are designed to be adapted to each country’s well-established practices, utilizing the “Country Version of GIPS” (CVG) approach.

D)    represent the highest performance measurement and presentation practice worldwide.

4.In 1995, the CFA Institute sponsored and funded the Global Investment Performance Standards (GIPS) in response to:

A)    an increase in insider trading.

B)    new regulation passed by the SEC.

C)    all of the reasons listed here.

D)    a need to address issues, such as portability of investment results.

5.Which of the following statements regarding CFA Institute Global Investment Performance Standards (GIPS) is TRUE? A firm that employs members of CFA Institute:

A)   must comply with the GIPS only within the United States.

B)   is not required to conform to the GIPS.

C)   must choose to comply with either the Performance Presentation Standards (PPS) or GIPS.

D)   must comply with the GIPS only outside the United States.

答案和详解如下：

1、A good way to describe the Global Investment Performance Standards (GIPS) is a:

A)   legal doctrine with criminal penalties.

B)   screening mechanism for determining appropriate international investments.

C)   common yardstick for means of comparison.

D)   means of assessing stock markets in different parts of the world.

The correct answer was C)

Just like the Presentation Performance Standards (PPS), the GIPS serve as a yardstick so the performance of one individual or firm can be properly compared to that of another.

2、As countries adopt the Global Investment Performance Standards (GIPS), which of the following is least likely to occur?

A)   The trend toward cross country investments will decline.

B)   Competition in the global investment industry will be enhanced.

C)   Existing and potential clients will be able to make fair and unambiguous comparisons among investment firms.

D)   Investment consultants will be better equipped to fairly assess historical investment performance.

There is no reason to expect the level of international investing to decline as a result of the adoption of a global set of performance standards. If anything, international investing will become more attractive as the credibility of reported performance results improves.

3.Which of the following statements regarding the Global Investment Performance Standards (GIPS) is TRUE? The GIPS standards:

A)   are considered to be the minimum global standard for historical performance presentation.

B)    are designed to supplement local standards of historical performance presentation in countries around the world.

C)   are designed to be adapted to each country’s well-established practices, utilizing the “Country Version of GIPS” (CVG) approach.

D)    represent the highest performance measurement and presentation practice worldwide.

The correct answer was D)

GIPS are envisioned as being “the” standard worldwide, and would eliminate the need for separate local standards. The CVG approach is currently utilized, but the goal is to converge all standards globally and eliminate the need for CVGs.

4.In 1995, the CFA Institute sponsored and funded the Global Investment Performance Standards (GIPS) in response to:

A)    an increase in insider trading.

B)    new regulation passed by the SEC.

C)    all of the reasons listed here.

D)    a need to address issues, such as portability of investment results.

The correct answer was D)

The GIPS were created to address the portability of investment results, varying time periods, and survivorship biases. Government regulation was not an issue nor was insider trading.

5.Which of the following statements regarding CFA Institute Global Investment Performance Standards (GIPS) is TRUE? A firm that employs members of CFA Institute:

A)   must comply with the GIPS only within the United States.

B)   is not required to conform to the GIPS.

C)   must choose to comply with either the Performance Presentation Standards (PPS) or GIPS.

D)   must comply with the GIPS only outside the United States.

No firm is required to comply with either PPS or GIPS. These are CFA Institute guidelines, and a firm can choose to conform to one or both.