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CFA Level 1 - Ethical and Professional Standards
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According to the Global Investment Performance Standards (GIPS), which of the following is true regarding the use of carve-outs in composite construction?
a.
Carve-outs can be included in composites even if they do not represent a standalone portfolio as long as their cash flows are tracked separately
b.
Carve-outs must be representative of a standalone portfolio managed according to a similar strategy
c.
Carve-outs from multiple asset class portfolios can be included in single asset class composites if the carve-outs are managed with their own cash balance
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