correct answer is B.
But why isn’t answer Five years?
please explain.. I am getting confused
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The Global Investment Performance Standards (GIPS) are a set of ethical principles and guidelines that investment firms can choose to adopt to ensure consistent and transparent reporting of investment performance.
To adhere to GIPS, firms need to meet certain requirements, one of which is the minimum number of years of historical performance data they must present. According to GIPS, firms must show a minimum of five years of compliant performance history or, alternatively, show all periods since the firm’s inception if it is less than five years.
In this case, the investment firm was founded ten years ago, and it adopted GIPS standards two years ago. Since the firm has been in existence for ten years, it must present a minimum of seven years of compliant performance history (all periods since its inception) to adhere to GIPS. Therefore, the correct answer is B: Seven years.
The option of five years is incorrect because the firm’s history extends beyond five years, so it must present more than just the last five years of performance data.
see the firm started 10 years ago but adopted gibs standard 2 years ago…so 2 years ago firm would have shown 5years performance but now after 2 years it has to show for 7 years as the target is always 10yrs to eliminate the varying time period issue