Bob Milam manages the investment account of a retired couple who lives off of their investments and are very risk averse. One of Bob's investment positions for the couple was to write (sell) call options on stocks held in the account. With respect to selling the call options:

A.

Bob can write the call options, as long as the beta of the portfolio increases.

B.

Buying and selling call options are prohibited for individual investors under all conditions.

C.

Bob has violated the standard requiring prudence, because writing (selling) call options is a risky position.

D. Bob can write the call options, as long as it reduces the risk of the portfolio.

Stone Investments has 43 portfolios that are under the companys management. Stone is preparing a brochure that will be presented to perspective customers. The brochure would like to indicate the performance of the funds. Which of the following would be in compliance with the CFA Standards of Practice.

	A.	Present the returns on the largest portfolio.
	B.	All methods are permitted.
	C.	An asset weighted average of returns of all of the portfolios.
	D.	Select a few representative portfolios and present their returns.
	E.	An equally weighted average of all of the portfolios.