Question

If an adviser develops investment tools (e.g., charts and spreadsheets), it must make adequate disclosure regarding:

A. The assumptions and inputs used in the development of the tools.
B. The limitations of the tools.
C. The intended use of the tools.
D. All of the above.vvvvv

Answer 1

D. All of the above

Investment advisers must disclose the assumptions and inputs used, the limitations, and the intended use of any investment tools they develop, such as charts and spreadsheets.

Step-by-step explanation:

When an adviser develops investment tools, such as charts and spreadsheets, it is important that they make adequate disclosure regarding several key aspects of these tools.

These aspects include:

• The assumptions and inputs used in the development of the tools, which helps users understand the foundation upon which the tools are built.
• The limitations of the tools, which refers to any potential weaknesses or areas where the tool may not provide accurate or comprehensive information.
• The intended use of the tools, which guides users in applying the tool correctly in their investment decision-making process.

Therefore, the correct answer to the question is D. All of the above.