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| A money management firm has created a new junk-bond fund. When the firm advertised the new fund at its issuance, they used care to accurately compute the returns from the past 10 years for all assets in the fund. The firm used the current portfolio weights to determine an average annual historical return equal to 18% and claim an 18% annual historical return in their advertising literature. With respect to Standard III(D), Performance Presentation, this is: A)in compliance. B)a violation because the advertisement implies the firm generated this return. C)a violation because the Standard prohibits computing historical returns on risky assets like junk bonds. |