Misrepresentation of Investment Performance

Very Easy Cfa Institute Code And Standards Professionalism - Misrepresentation

An investment analyst is preparing a client presentation and decides to include some performance metrics. To make the investment strategy appear more successful, the analyst alters the data slightly to present more favorable results, misrepresenting the actual performance of the investment. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, which of the following statements best describes the analyst's actions?

The analyst is acting ethically since the data manipulation is minor and does not affect the overall message.

The analyst is engaging in misrepresentation, which violates the CFA Institute’s Standard of Professionalism.

The analyst is allowed to present modified data if it serves to educate the clients.

Hint

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