CFA Level 1 Question of the Week – Ethical and Professional Standards

The correct answer is A.
Calculating performance using daily cash flows provides the most accuracy in all performance calculations, including the SI-IRR. For private equity investments, the GIPS standards, therefore, require daily cash flows for periods after 1 January 2011 and recommend daily cash flows for periods prior to 1 January 2011. For periods ending prior to 1 January 2011, the SI-IRR must be calculated using either daily or monthly cash flows.