Missed Questiosn - 6/22/24

Your 30-year-old client has $100,000 to invest and willing to assume a moderate amount of risk, but she would also like to have $10,000 available for a down payment on a home in 6 months. Which of the following asset allocation strategies would best suit her situation?

70% large-cap stock fund, 20% balanced fund, 10% money market fund

Both state and federal law contain a number of exclusions from the definition of investment adviser. Which of the following choices is unlikely to qualify for an exclusion?

A retired mechanical engineer who charges a reasonable fee for offering investment advice in his areas of expertise to less than 25 clients

An investment adviser is analyzing 4 bonds of similar quality for a client. Bond A has a coupon of 6%, matures in 12 years, and is currently priced at 50. Bond B has a coupon of 8%, matures in 9 years, and is currently priced at 50. Bond C has a coupon of 4%, matures in 18 years, and is priced at 45. Bond D has a coupon of 12%, matures in 6 years, and is priced at 50. Based on NPV, which of these bonds represents the better value?

Bond C

Which of the following investments would not be considered exchange-traded derivatives?

Forwards

Which of the following are considered unsystematic risks? I. Business II. Liquidity III. Market IV. Purchasing power

I and II

Assume that a corporation issued a 5% Aaa/AAA rated debenture at par. Two years later, similarly rated debt issues are being offered in the primary market at 5.5%. Which of the following statements regarding the outstanding 5% debenture are true? I. The current yield on the debenture will be higher than 5%. II. The current yield on the debenture will be lower than 5%. III. The dollar price per bond will be higher than par. IV. The dollar price per bond will be lower than par.

I and IV

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, who is required to register as an investment adviser in a particular state? I. An adviser who manages client accounts in excess of $100 million in value II. An adviser who manages client accounts with less than $100 million in value III. An adviser to investment companies registered under the Investment Company Act of 1940 IV. An adviser who acts as pension consultant to employee benefit plans with assets of $200 million or more

II only

Which of the following statements regarding an agent's registration is correct?

Revocation of the registration of that agent's broker-dealer will result in that agent's effective registration being put on hold.

Under NASAA's Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers, which of the following practices is appropriate for an adviser who does not have custody or discretion over clients' assets?

Tom manages 35 clients who suffer financial loss while he is trying to contact them for authorization to trade.

In which of the following situations is an agent committing a prohibited practice?

Using discretion to purchase a security in a discretionary account while awaiting written receipt of trading authority

Which of the following would be a violation of the NASAA Contents of Investment Advisory Contract Model Rule?

Without the consent of advisory contract holders, the owner of a majority of the stock of the advisory firm pledges that stock to a bank as collateral for a loan enabling the firm to acquire better cybersecurity technology.

A technical analyst would be least concerned with

book value per share

A client wishing to hedge a long stock position would be most likely to:

buy a put on that stock.

Among the reasons to consider investing in a variable annuity would be all of the following except

capital gains treatment on any realized gains upon withdrawal

An increase in the earnings per share growth rate from one reporting period to the next is called

earnings momentum.

A state-registered investment adviser organized as a corporation is required to preserve a copy of its articles of incorporation

for three years after the termination of the enterprise.

The contribution limit has to be aggregated when participating in both

a 401(k) and a 403(b)

An investment adviser who is discussing forward contracts with a client would most likely be referring to an investment in

an agricultural commodity.

All of the following statements concerning an agency cross transaction for an advisory client are true except

an investment adviser may recommend the transaction to both parties to the transaction

Under the USA, an Administrator may

revoke the registration of a broker-dealer and thereby place into suspense the registration of all the agents employed at the broker-dealer.

When analyzing a company's financial statements, gross profit is computed by subtracting from revenues

the cost of goods sold

You have a client who invested in the PQR Growth Fund 10 years ago and now, as retirement age approaches, asks you about using the exchange privilege to move into the PQR Balanced Fund. The client should know that

this exchange is considered a taxable event as of the date of the exchange.

One of your customers has a scheduled premium variable life insurance policy purchased 10 years ago. The initial face value was $1 million and the annual premium is $1,200. A few years ago, with the cash value of the policy at $30,000, the customer borrowed $20,000 for a home improvement project. Of that, $10,000 has been repaid, and the current cash value is $45,000. With the current death benefit showing as $1.1 million, the customer's death would provide the beneficiary with

$1,090,000.

​In terms of being considered compensation for determining the allowable contribution to an IRA, receipt of which of the following would be included?

Alimony received as part of a divorce decree signed in 2018

Current market interest rates are 6%. A bond with an 8% coupon would be most likely to have a net present value of zero when the bond's internal rate of return is

6%.

According to the Uniform Securities Act, a state-registered investment adviser may have custody of a customer's funds and securities if

the Administrator has been notified of the custody arrangement.