QUESTION 24

1. Ben White, CFA, who works as an independent investment adviser, recommends that his clients purchase a mutual fund that invests only in AAA short-term bonds. White made the following statements to his clients:

Statement 1: The fund has zero default risk because all investments in the fund are AAA credit rated.

Statement 2: Based on historical performance, the annual return from the mutual fund will be more than 10 percent.

Which of Whites statement(s) violated the CFA Institute Code and Standards?

	a.	Both statements violated the Code and Standards.
	b.	Only Statement 1 violated the Code and Standards.
	c.	Only Statement 2 violated the Code and Standards.