Orion Series 65 Exam 5 Additional Questions
An investor diversifying a corporate bond portfolio does NOT consider:
Domicile of the investor
Your daughter is getting married and, to celebrate, you give her fiance a beautiful watch that you purchased for $5,575. What are the tax consequences of this gift?
No Tax
Which of the following portfolio management styles would most likely incur the highest transaction costs?
Tactical Asset Allocation
A popular funding technique that involves investing the same amount at regular intervals is known as dollar cost averaging. participating in this funding approach tends to lesson which risk?
Timing
An investment adviser is doing some research on a company and notices that the current price is $21 per share. The most recently reported EPS is $3 and the company is paying a 19 cent quarterly dividend. On the balance sheet, the company is carrying a significant amount of cash. This company would probably be attractive to this adviser if his investment style was:
Value
The Capital Asset Pricing Model (CAPM) is most commonly used to determine an investor's:
expected return
There are several popular investment styles and, in many cases, portfolio managers use a blended approach to security selection. If a portfolio manager adhered to a pure value style, he would put most of his focus on:
the company financial statements
One respect in which an LLC differs from an S corporation is that
there is no statutory limit on the number if investors in an LLC
Which of the following statements about C corporations are True? I. A C corporation pays income tax on its earnings at the corporate level II. The income of C corporations is subject to double taxation
I and II
Asset allocation is an important element of the portfolio management process because: I. Different asset classes have different risk and return characteristics II. Research indicates that asset allocation is much more important than security selection. III. Portfolios that are focused on different asset classes will have very different returns over time IV. investors may prefer returns in different forms (eg. income or capital appreciation)
I, II, III, and IV
