PT5 S66

An investor purchased a Mosaks, Inc. put option with a strike price of $105. If Mosaks' stock price is $115 at expiration, the value of the put option is

$0 - value of $0 because it will not be exercised

An Administrator may summarily suspend a registration pending final determination of proceedings under the USA. However, the Administrator may NOT enter a final order without

- appropriate prior notice to the registrant - an opportunity for a hearing - findings of fact and conclusions of law

A preorganizational subscription is an exempt transaction if there are : - -

-no more than 10 subscribers -and no commissions are paid, either directly or indirectly

Under ERISA, a fiduciary (is/is not) required to confine investments to only those most likely to achieve growth

Is Not

A distribution from an IRA taken in equal annual amounts over the owner's life (is/is not) subject to the 10% premature distribution penalty even if started before age 59½

Is not

which efficient market hypothesis suggests that an investor can achieve above-market returns by only utilizing insider information?

Semi-strong

Both rights and warrants may trade in the secondary market and may have prices that include a speculative (time) value

Warrants are often issued attached to a bond issue to reduce the interest costs to the issuer.

A manager of a venture capital fund would be most interested in investing in

a young, promising company

The exercise prices of warrants are usually _____ the current market price of the underlying security at time of issue

above

Review of an SEC-registered investment adviser's policies and procedures designed to prevent violation of the federal securities laws must take place no less frequently than

annually - by the CCO

The exercise prices of stock rights are usually ______ the current market price of the underlying security at time of issue

below

Because the C corporation is an entity separate from its shareholders, suitability for a C corporation account is based solely on the company itself

does not require considering the suitability of the owners

There is no place on the Form U4 to indicate the applicant's ...

education background

The exception for qualified domestic relations orders (QDROs) and for retirement at age 55 apply to ...

employer-sponsored plans

ERISA prohibits retirement plans from making investments that are ...

excessively speculative - such as uncovered call writing, which possesses unlimited risk.

The CAPM assumes that the optimal portfolio should be the one with the ..... of all possible portfolios.

highest Sharpe Ratio

One of the risks in setting up a GRAT is that if the grantor dies during the term of the trust (usually 3-10 years), the assets put in the GRAT, plus any appreciation, are

included in her estate

The commonly tested _____________ are: liquidity needs, time horizon, taxes, legal and regulatory factors, and unique needs and preferences

investment constraints

The commonly tested investment constraints are: ... 1- 2- 3- 4-

liquidity needs time horizon, taxes legal and regulatory factors and unique needs and preferences

larger accounts tend to have many of the smaller fees waived. However, if the client is _________________, it is likely that the transfer fee will be charged

moving the account to another firm

The fiduciary is required to diversify investments so as to minimize the risk of losses, unless doing so is clearly ...

not prudent under the circumstances

The IRA overcontribution 6% penalty can be avoided by ...

removing the excess contribution plus any growth it experienced before removal

which efficient market hypothesis suggests that nothing has any value - efficient markets are totally random.

strong form

which efficient market hypothesis suggests that technical analysis is of no value

weak form