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

If a firm uses non- discretionary leverage, it must present performance using:
A . both actual returns and all- cash basis.
B . all- cash basis i.e. removing leverage effects.
C . actual returns.
D . none of these answers.

View Answer

Answer: B

Explanation:

According to Section B of the PPS standards – "Calculation of Returns" – for non- discretionary leverage, performance must be presented on an all- cash returns basis.