Smith is a portfolio manager at an alternative asset management firm, AltInvest LLC. At the direction of her boss, she makes a one-time allocation of the expenses incurred by the Private Credit Opportunities fund to the Private Credit Special Situations fund. Her boss wants to temporarily boost the end-of-year results of the Private Credit Opportunities fund, which has been underperforming. Her boss explains that the Private Credit Special Situations fund closed recently and just entered its long investment period, thus investors in the fund would not yet expect it to deliver good results. In contrast, the investment period of the Private Credit Opportunities fund ended years ago, and its harvesting period is soon coming to an end. Boosting the performance of the Private Credit Opportunities fund also should help attract investors to the Private Credit Opportunities II fund. The consolidated performance results of AltInvest are not affected by the reallocation of expenses between these two funds.

Smiths actions are

		inappropriate.
		appropriate because the consolidated performance results of AltInvest are not affected by the reallocation of expenses.
		appropriate because the chosen way of reporting is only temporary.
		appropriate because Smith followed the directions of her boss.
		None of the above.