Which of the following is/are true about the PPS?

Which of the following is/are true about the PPS?

I. Accounts of clients that are not currently under the firm’s management should not be included in the presentation of the historical performance results.

II. Compliance with PPS cannot be met on a composite- by- composite basis, only on a firm- wide basis.

III. The PPS require that firms report, at a minimum, at least the most recent 5 years (or since inception, if less than 5 years) of performance results.
A . III only
B . I only
C . I and III only
D . II only
E . I, II and III
F . I and II only
G . II and III only

Answer: D

Explanation:

The PPS require that firms report, at a minimum, at least the most recent 10 years (or since inception, if less than 10 years) of performance results. If this requirement cannot be met, exact reasons for this should be disclosed. Historical results should be presented as is to give a fair representation of past performance. Dropping portfolios selectively can bias the results. Also, Compliance with PPS cannot be met on a composite- by- composite basis, only on a firm- wide basis.