| Description |
Grey recommends the purchase of a mutual fund that invests solely in long-term
US Treasury bonds. He makes the following statements to his clients:
I. “The payment of the bonds is guaranteed by the US government ; therefore, the
default risk of the bonds is virtually zero.”
II. “If you invest in the mutual fund, you will earn a 10% rate of return each year
for the next several years based on historical performance of the market.”
Did Grey ’s statements violate the CFA Institute Code and Standards? |