Orion Series 65 Quick Quiz 14, 15, 16, & 17
A limited liability company is
a company with tax consequences similar to a partnership
If a husband makes a gift of $100,000 to his wife, a U.S. citizen, how much of the gift is subject to gift taxes?
$0.00
An investor purchases 100 shares of stock at $100 per share on January 1st. On the following July 1st, the shares are sold for $120 per share. The Tax consequences are:
$2,000 Short-term Gain
Which of the following market analysts is using the efficient market theory?
An analyst picks company names out of a hat
Investors wishing to employ a passive strategy for their bond portfolios would most likely elect which of the following?
Buy and Hold
The Jones family has scheduled an initial visit with a financial planner. Mr. Jones has an annual salary of $70,000 and this is their first attempt at financial planning. Which of the following should be the first step taken by the financial planner?
Establish an Emergency Fund
Buying stocks with high PE ratios normally reflects which of the following investment styles?
Growth
An investor purchases 500 shares of stock on January 10th at $50 per share and sells it on August 4th of the following year for $40 per share. As a result, the investor has realized a:
Long-term Capital Loss
As compared to value investors, growth investors tend to:
Look for companies whose sales, earnings, or market share are increasing at an above-average rate.
Which of the following is federally tax exempt of a corporation?
Municipal Bond Interest
The concept of creating a model portfolio, through asset allocation principles, that both increases return and reduces risk is known as:
Portfolio Optimization
Which of the following is a characteristic of the passive investment style?
Rebalancing
The management style that is most similar to buy and hold is:
Strategic Management
A professional tennis player comes to you seeking advice on setting up a trust. She is interested in giving to charity and also wants discretion as to when income is distributed to the beneficiaries, her parents. Which trust do you advise she use?
Complex Trust
In the field of portfolio management, there are a number of different management styles. One of those styles involves committing additional capital to the market when others are reducing their exposure, or eliminating positions while others are increasing theirs. This style is generally referred to as:
Contrarian
If a new client has $200,000 to invest and wants to retire in 15 years, which of the following client information is least necessary for an adviser to recommend a suitable investment program?
Current income and cash flow requirements
An investment strategy where a higher price is paid for a stock based on expected returns is:
Growth Investing
An investor can choose between four portfolios with the following expected returns and standard deviations. I. Expected Return 8% Standard Deviation 20% Based on Modern Portfolio Theory (MPT), which portfolio should the investor choose?
I.
Assets that might be found on a family balance sheet include: II. Gold Watch III. Keogh Plan
II and III
In a trust account, the person who makes the account management decisions is the:
Trustee
