Envestnet Tests
CRMs are front-end systems used to manage client and prospect information? a. True. b. False.
A. True
Consolidated performance reports are an advantage for clients who invest in UMH accounts. a. True b. False
A. True
Generally, the later one elects to collect their Social Security benefits, the larger the amount. a. True. b. False.
A. True
Today a technology exists that allows an advisor to coordinate all registrations toward a single objective. a. True b. False
A. True
Two technology components of UMH accounts include overlay management tools and consolidated reporting tools. a. True b.False
A. True
Unlike a Mutual Fund, the investor owns the securities held in a Separately Managed Account. a. True b. False
A. True
If a client has more than one account and some are taxable and some are nontaxable, they can either have a UMH or several UMAs. a. True b. False
A. True
It is important for risk tolerance assessment to be made regarding the upside and downside of investments. a. True. b. False.
A. True
Registered investment advisors must file a form ADV. A. True B. False
A. True
The Social Security Administration is on record saying that the program was never intended to be a retired person's only source of income. a. True. b. False .
A. True
The significant difference between UMA and UMH is that the UMH has multiple account registrations and the UMA has one account registration. a. True b. False
A. True
Which certification is typically required for professional money managers? a. CFA (Chartered Financial Analyst) b. MLQ (Money Legalist Qualified) c. ChFC (Chartered Financial Consultant) d. all of the above
A.
What is the typical minimum needed to establish a Separately Managed Account? a. $100,000 b. $50,000 c. $1,000,000 d. None of the above
A. $100,000
A dually registered advisor can be defined as an individual that can charge both fees and commissions. A. True B. False
A.
Active investing is typically performed by a professional money manager. a) True b) False
A.
An example of a base policy mix could be: a) 60% stocks/40% bonds b) Not investing in tobacco companies/concentrating on green companies c) Neither of the above d) Both of the above
A.
Generally, an increase in a portfolio's return increases its risk. a) True b) False
A.
If one bond yields 4.5% and another yields 4.75%, the difference in the yield is: a. 25 basis points b. 50 basis points c.10 basis points d.100 basis points
A.
In the global wealth cycle, the funds provided to financial institutions are lent to businesses to hopefully grow and strengthen the business, and thereby, hopefully strengthen and grow the economy. A. True B. False
A.
One of the differences between a wirehouse and an independent broker-dealer is that in an independent broker-dealer, the advisors are usually independent contractors and in a wirehouse they are typically employees. A. True B. False
A.
Risk is measured using: a) Standard deviation b) Relative returns c) Concavity d) All of the above are measures of risk
A.
The goal of passive investing is to possibly match a benchmark/index by purchasing assets that mirror the benchmark/index. a) True b) False
A.
The higher the standard deviation, the more the portfolio deviates from its average rate of return, thus the riskier the investments. a) True b) False
A.
This can be defined as a contribution plan offered by an employer to its employees that allows them to set aside tax-deferred income for retirement purposes and in some instances the employer matches the contribution dollar for dollar. a. 401 (k) b. IRA c. Defined Benefit Plan d. Bond
A. 401K Plan
The four steps of the consultative sales process are: a. 1. Information gathering and client profile; 2. Presenting financial plan; 3. Plan implementation and management; 4. Ongoing monitoring and research. b. 1. Information gathering; 2. Presenting financial plan; 3. Managing assets; 4. Seeking client referrals. c. 1. Introducing team and firm; 2. Gathering information; 3. Presenting plan; 4. Presenting alternative plans. d. None of the above.
A. As Written
This is the process that takes into account the client's objective, determined income needs and liabilities, time horizon, tax situation and the client's risk tolerance. a. Consultative Process b. Advisory Process c. Management Process d. Wirehouse Process
A. Consultative Process
Householding allows for the combining of accounts held within the advisor's firm while account aggregation allows for combining of accounts regardless of where they are held. a. True. b. False.
A. False
There are three ways the advisor can communicate performance to their clients. The most common way is: a. Online. b. In reports. c. Through formal presentations.
A. Online
What does the Social Security acronym PIA stand for? a. Primary Insurance Amount. b. Pre-retirement Insurance Amount. c. Preliminary Incident Allowed. d. Prorated Insurance Amount.
A. Primary Insurance Amount
The timing of distributions from Social Security is important because: a. Choosing an earlier distribution can result in a locked-in reduction to the monthly amount. b. Waiting until FRA, or full retirement age, will decrease the monthly amount. c. The timing of distributions does not matter since the choice can be changed at any time. d. If a person waits too long to choose distributions, the benefit is forfeited.
A. Reductions if selected early
Most advisors say, the most difficult part of creating a client profile is accurately assessing the client's: a. Risk tolerance. b. Complete asset picture. c. Tax situation. d. Financial objectives.
A. Risk Tolerance
What is the difference between a mutual fund and an SMA? a. SMAs investors own the individual securities; mutual fund investors do not b. SMAs have multiple investors; mutual funds have only one c. SMAs are professionally managed; mutual funds are not d. SMAs have an overlay manager; mutual funds do not
A. Sma's own their own shit
Like all managed investment solutions, a typical Rep as Advisor or Rep as Portfolio solution has a sponsor associated with the program. a. True b. False
A. TRue
Technology for UMH accounts is continuing to evolve for the best interest of the client. a. True b. False
A. TRue
What are the four steps of the advisory work cycle? a. Information Gathering; Planning & Proposal; Implement & Manage; Research & Monitor. b. Gather Information/Plan; Propose; Manage; Prospect. c. Propose; Implement; Research; Prospect. d. Organize; Propose; Manage; Organize.
A. That on e
A managed investment solution is an investment portfolio that is tailored to the specific needs of the individual or institution that owns the account. A. True B. False
A. True
A managed investment solution will typically have investment objectives spelled out in an investment policy statement. A. True B. False
A. True
A registered investment advisor is held to a fiduciary standard. A. True B. False
A. True
A unified managed household is a technology platform for financial advisors to address comprehensive investment needs of multiple, related individuals with multiple account registrations across any custodian. a. True b. False
A. True
An overlay manager is typically used in both UMAs and UMH accounts. a. True b. False
A. True
A growth stock can be described as: a) A stock that is underpriced compared to stocks with similar fundamentals. b) A stock with potential to grow faster than other stocks in the same category. c) A stock that was issued within the last three years. d) The stock of a company in a developing country.
B.
A strategic asset allocation relates only to the initial stage of the investment process. There is no need for ongoing investment advice once the plan has been established. a) True b) False
B.
NAV stands for: a. Normal accounting valuation b. Net asset value c. Net allocation value d. Natural acceleration valuation
B.
Once an investment policy statement (IPS) is developed for a client, it remains unchanged throughout the entire time the client and the financial advisor maintain a relationship. A. True B. False
B.
One-fourth of the global economy is outside of the U.S. a) True b) False
B.
Strategic asset allocation refers to the method of investing that promotes moving in and out of equities and bonds to quickly capture short-term dislocations in the markets. a) True b) False
B.
Tactical allocation realigns the portfolio back in line with the original base policy mix. a) True b) False
B.
Technical analysis is typically used with a long-term time horizon in mind. a) True b) False
B.
The bottom-up approach to investing focuses most of its decision-making on the following: a) The broad economy b) Individual companies c) Industry sectors d) all of the above
B.
The fiduciary standard was established as part of: A. The National Advisers Act of 1940 B. The Investment Advisers Act of 1940 C. The Annual Advisor Conference of 1940
B.
What is the benefit of a diversified portfolio? a) Possible increased exposure to positive market trends b) Possible increased return and decreased risk c) Possible decrease in risky assets such as stocks d) There is no benefit as long as a portfolio contains the correct investments
B.
When A broker-dealler executes trades for his/her firm's account, he/she is acting as a broker. A. True B. False
B.
When are ETFs priced? A. The beginning and end of each trading day B. Continuously throughout the trading day C. The beginning and end of each quarter D. The beginning and end of each week
B.
Which of the following assets is essentially a loan to a company or to the government? a. Stock b. Bond c. Mutual fund d. ETF e. All alternative investments f. All of the above
B.
Which of the following best describes a Defined Benefit Plan? a. A company retirement plan in which a retired employee receives the amount held in an investment account in which contributions are made by the employer, the employee, or both. b. A company retirement plan in which a retired employee receives a clearly specified amount based on salary history and years of service and in which the employer bears the investment risk. c. A company retirement plan in which a retired employee receives whatever amount is earned in an investment account that targets an amount based on salary and years of service and in which the employee bears the investment risk.
B.
Which of the following is a way in which an ETF differs from a mutual fund? A. an ETF consists of multiple assets B. an ETF is sold on a stock exchange C. An ETF does not have to disclose its assets D. None of the above; an ETF is a type of mutual fund (no fkin way)
B.
Which of the following is always managed by a professional money manager? a) Investment portfolio b) Managed investment solution
B.
Which of the following should NOT be considered when constructing an investment strategy to be managed within a client's IRA account? a) Expected risk b) Tax efficiency c) Expected return d) Trading costs
B.
Which type(s) of investment solution is/are bought/sold and priced only at the end of the trading day? A. Exchange Traded Funds (ETF) B. Mutual Fund C. Equities D. All of the Above
B.
Which of the following is true? a. In fee based pricing, the more the assets grow, the smaller the fee. b. The total assets in managed investment solutions have exceeded $3 trillion c. Some, but not necessarily all, managed investment solutions are best sold through the consultative process d. All statements are true.
B. $3 trillion in asset based management
The estimated number of baby boomers in the United States today is: a. 110 million b. 76 million c. 60 million d. 95 million
B. 76 Million
Which investment represents a loan to a company? a) Stock b) Bond c) Exchange-traded fund d) Mutual fund
B. Bond
The technology needed by the financial advisor in order to manage by objective does NOT include: a. Planning tool b. Department of Labor tool c. Execution tool d. Tracking tool
B. DOL tool
In the 1970s, where did most American retirement money reside? a. Mutual Funds b. Defined Benefit Plans c. Stocks d. 401 (k)s
B. Defined Benefit Plans
"Wirehouse" is a relatively new term in the industry. A. True B. False
B. False
A UMA can be described as both a managed solutions offering and a managed solutions technology. a. True b. False
B. False
A Unified Managed Account allows for professional money management of multiple investment vehicles across multiple account registrations a. True b. False
B. False
A candidate for the Series 24 license must first hold a Series 6 license. A. True B. False
B. False
A managed account sponsor is not responsible for the suitability of the assets to the client. A. True B. False
B. False
Account aggregation allows the advisor to put all of the client's assets into one workspace as long as they are under the custody of the advisor's firm. a. True. b. False.
B. False
Baby boomers will be well served to place all of their assets, except health care payments, into one "bucket" acting as their retirement assets. a. True b. False
B. False
Draw down technology is typically applied across account registrations in a UMA. a. True b. False
B. False
Fees are generally never discussed until the last or next-to-last meeting with a prospect. a. True. b. False.
B. False
In a managed investment solution, clients are usually charged separately for administrative fees, management fees, and commissions. A. True B. False
B. False
Most baby boomers approaching retirement have a fairly clear understanding of how much money must be saved in order to maintain their lifestyle. a. True b. False
B. False
Mutual fund investors individually own the securities in the fund. A. True B. False
B. False
Some advisory components of UMA are consolidated household reporting as well as integrated rebalancing and investment management across account registrations. a. True b. False
B. False
Taxable accounts and non-taxable accounts can have the same registration. a. True b. False
B. False
The UMA benefits only the investor. There is no benefit to the advisor. a. True b. False
B. False
The consultative sales process is a fixed, four-step process to which every financial advisor should closely adhere. a. True. b. False.
B. False
The majority of today's investors typically have a defined benefit plan at work; therefore saving for retirement is not a priority. a. True . b. False.
B. False
The suitability standard is far more stringent than the fiduciary standard. A. True B. False
B. False
There is only one type of managed investment solution account. A. True B. False
B. False
Today, more people then ever are covered by a defined benefit plan offered by their employer. a. True b. False
B. False
The consultative process is generally only used with baby boomers. a. True b. False
B. False fr
Arguably, one of the primary causes of the market disruption in 2008 was: a. Trouble in the European markets b. High levels of debt and questionable oversight c. Global instability due to fighting the war on terror d. Overpriced housing prices
B. High levels of debt and questionable oversight
Who contributes into an IRA? a. Multiple employees b. The employer c. A single individual d. A single employee, and employers provide matching funds.
C. A single Individual
In order to meet the baby boomers needs, it will be necessary for financial advisors to: a. Receive financial planning certifications b. Move away from selling specific investment solutions to more comprehensive retirement planning c. Encourage their baby boomer clients to simplify their lifestyles d. None of the above
B. Move away from selling specific investment solutions to more comprehensive retirement planning
Which type(s) of investment solution is/are only bought/sold at the end of the day? a. Exchange-Traded Fund (ETF) b. Mutual Fund c. Individual Securities d. All of the Above
B. Mutual Funds
During the first meetings with a prospective client, the best questions are: a. Close-ended. b. Open-ended. c. Ones about their parents. d. There are no questions that are better than others.
B. Open-Ended
This is a mechanism, typically using technology, to rebalance an investor's portfolio back in line with the original stated risk/reward objective. a. Consulting Process b. Rebalancing c. Overlay Management d. Performance Reporting
B. Rebalancing
The majority of an investment advisor's clients come from: a. Public seminars. b. Referrals. c. Friends and family. d. Many different sources.
B. Referrals
Which managed investment solution allows the advisor to purchase and sell securities without prior approval from client? a. Rep as Advisor b. Rep as Portfolio Manager c. both a. and b. d. neither a. or b.
B. Rep as Portfolio Manager
Which of the following does/do NOT utilize Overlay Management? a. Unified Managed Account b. Separately Managed Account c. Neither a or b d. Both a and b
B. Seperately Managed Accounts
Customer Relationship Management systems can be best described as: a. All of the tasks involved in bringing a client's assets into the firm. b. The front-end systems that the advisor uses to manage client and prospect information. c. A firm's individualized and specific way of handling issues that arise concerning their clients and prospects.
B. The front end systems
What is a common feature of the Sub Advised Program, the Dual Contract and a Proprietary Program? a. They all have a set list of approved managers. b. They all have a sponsor. c. They all have one contract. d. They all have the same minimum account requirements and fees.=
B. They all have a sponsor
One of the main reasons managed investment solutions are so popular is: a. They have been around a long time so investors are used to them and fully understand them. b. The fiduciary standard requires that the funds be managed by the money manager as if it were his/her own. c. It is hard to say; everyone has their own reason for liking managed investment solutions. d. They are readily available throughout the financial services industry.
B. They handle it like a child
An important consideration when implementing a portfolio for a new client with existing assets is: a. Making sure the new assets are similar to the existing assets. b. Making sure there are no adverse tax consequences. c. Ensuring that the previous financial advisor understands why the client is leaving. d. Opening the new account in exactly the same name as the old one for tax reasons.
B. bad Tax Stuff
The main difference between a UMH and a UMA is: a) Use of an overlay manager b) Management across multiple account registrations c) Ability to rebalance the assets at the touch of a button d) Analyze securities to avoid overlap e) Minimization of taxes
B. that one
Investors in which of the following investments may be influenced by the actions of others also investing in this investment? a. Managed accounts b. Exchange traded fund c. Mutual fund d. Both exchange traded funds and mutual funds
C.
Strategic asset allocation seeks to: a) Increase return regardless of risk b) Decrease risk, sacrificing return c) Balance risk and return d) Completely eliminate risk
C.
Two common techniques of active investing are: a) Microeconomic analysis and macroeconomic analysis b) Long-term analysis and short-term analysis c) Technical analysis and fundamental analysis d) Conservative analysis and aggressive analysis
C.
Which of the following should NOT influence the change to an established strategic asset allocation? a) Change in client's risk tolerance b) Change in client's net worth c) Recent market returns
C.
Which of the following statements is FALSE? a) Individual investors today have an average of 20% of their portfolios in cash b) Alternative investments can be found in mutual funds c) The New York Stock Exchange is the largest and oldest stock exchange. d) The International Monetary Fund (IMF) is a United Nations organization that acts to stabilize global markets and maintain the monetary system.
C.
The legal administrator of a managed investment solution is called: a. a managed account administrator b. a wirehouse representative c. a managed account sponsor d. an independent contractor
C. A Managed Account Sponsor
Which of the following are components of the living plan? a. Health care coverage and continuity b. Inflation-adjusted life income stream and legacy c. Both of the above d. None of the above
C. All of the above
The three client life cycle phases are: a. Accumulation, Cessation, Retirement b. Gathering, Distribution, Legacy c. Accumulation, Transition, Distribution d. Growth, Transition, Bequest
C. As written
Which of the following statement(s) is/are true? a. Clients are demanding convenient and constant access to their financial information. b. By 2030, when all Baby boomers have turned 65, the number of people over age 65 will grow from 13% to 18%. c. Both a and b. d. Neither a and b.
C. Both A & B
Which of the following statements is NOT TRUE about Social Security: a. Although benefits increase for each month an individual waits to collect beyond their Full Retirement Age, if an individual waits until after age 70 to collect, their benefit maxes out at 132% of their Primary Insurance Amount. b. Married couples can claim benefits based on their own work records or 50% of their spouses' benefit, whichever is higher. c. Couples who claim spousal payments at FRA cannot later switch to payments based upon their own work record. d. Usually, survivor benefits are equal to the benefits the deceased spouse was receiving.
C. Couples who claim spousal payments at FRA cannot later switch to payments based upon their own work record.
CRM stands for: a. Creative Realistic Management. b. Comprehensive Regulatory Management. c. Customer Relationship Management.
C. Customer Relationship Managemetn
The establishment of fiduciary guidelines for retirement plan trustees came about in 1974 by: a. Employers who maintained defined benefit plans b. EF Hutton c. Employee Retirement Income Security Act (ERISA) d. Wirehouses
C. Employee Retirement Income Security Act (1974)
When an advisor gets a new client, his first step should be a. Invest in the highest yield asset possible b. Implement a plan that has worked in the past c. Figure out the client's goals d. Research the best investments on the market
C. Get the client's goals
What is a difference between a typical Rep as Advisor or Rep as Portfolio Manager solution and all the other solutions we discussed? a. They do not all follow the consultative process b. They do not all typically charge fees based on Assets Under Management (AUM). c. In Rep as Advisor or Rep as Portfolio Manager the advisor is both advisor and money manager. d. All of the above.
C. In Rep as advisor or Rep as portfolio manager, the advisor is both advisor and money manager
By funding an investor's portfolio as if it were a defined benefit plan, the investor: a. Is likely to accumulate more money. b. Switches the burden of the investment risk to his employer. c. Moves from a "beat the benchmark" mentality to a needs-based approach. d. Will be guaranteed of having money to leave to his grandchildren.`
C. Moves to a "Beat the Benchmark" mentality to a needs-based approach
Which of the following best describes UMH? a) A tool used by an overlay manager b) A managed solutions product c) A technology capability d) Aggregated performance measurement
C. Technology Capability
Who bears the investment risk in a Defined Benefit Plan? a. The Government b. The Employee c. The Employer d. Both the Employee and the Employer
C. The Employer
Who bears the investment risk in a defined benefit plan? a. The government b. The employee c. The employer d. Both the employee and employer
C. The employer
The main purpose of creating a client profile is: a. To allow the advisor to ask as many questions as he/she feels is necessary. b. To allow the financial advisor to gain referrals. c. To allow the financial advisor to understand the client completely. d. To comply with state regulations.
C. To understand the client completely
Technical analysis selects assets based on: a) Macroeconomic factors like GDP, interest rates, and unemployment b) Individual security types c) Patterns, movements, and market trends
C. `
The financial advisor of baby boomers must evolve from a "product expert" to a: a. Pension plan manager b. "Insight" manager c. Both of the above d. Neither of the above
C. both of the Above
A "top-down" approach of investing refers to focusing on: a) The balance sheets of individual companies b) The loan covenants of individual bonds c) Price movements of individual securities d) Macroeconomic factors like earnings, interest rates, and economic growth
D.
What is a fiduciary? A. An investment vehicle containing a mix of assets B. A retirement plan created by an employer C. A high-yield bond issued by a foreign government D. An adviser with legal responsibilities to his client
D.
When a person says, "The market is up today," they are generally referring to: a) Their personal portfolio b) The Russell 2000 Index c) The prices at grocery stores as measured by national supermarket indexes d) The Dow Jones Industrial Average
D.
When constructing a portfolio an advantage to thinking globally is: a) It provides diversification b) It may take advantage of growth in international markets c) Neither of the above d) Both of the above
D.
Where are ETF's Sold? A. The Sponsor's website B. The authorized participant's website C. Through the manufacturer D. on Major Stock Exchanges
D.
Which of the following investments are NOT continuously priced and traded throughout the trading day? a) Stock b) Bond c) Exchange-traded fund d) Mutual fund
D.
Which of the following pieces of information, relating to the end investor, is critical to a financial advisor's financial plan design? a) Client's investment experience b) Client's risk tolerance c) Client's financial objectives d) All of the above
D.
Which of the following statements is FALSE? a) There are more mutual funds than stocks traded on the New York Stock Exchange. b) Most experts consider the S&P 500 one of the best benchmarks available to judge overall US market performance. c) A client wishing to avoid a certain stock in his/her portfolio can be said to be using the bottom-up approach to investing. d) Standard deviation is used to measure how long a stock has been held in a portfolio.
D.
Which of the following statements is NOT TRUE: a. The consultative process was created to comply with the fiduciary standards required under ERISA. b. Anyone with discretionary control or authority over a plan's assets is considered a fiduciary. c. The steps involved in the consultative process benefit the investor as well as the plan sponsor, the investment manager and the financial advisor. d. All of the above statements are true.
D. All are true
Management by objective basically: a. Is a comprehensive retirement plan using all of the client's assets. b. Leads to the creation of a living plan. c. Coordinates the efforts and expertise of all of the client's trusted advisors d. All of the above.
D. All of the Above
Unified Managed Accounts future can best be described as: a. The future of managed solutions offerings b. One of the fastest growing and widely accepted managed solutions offerings c. Managed solutions technology that will keep evolving to better serve the investor d. All of the above
D. All of the Above
What of the following is true? a. ETFs are priced continuously; mutual funds are priced at the end of the day. b. ETFs are sold on a stock exchange; mutual funds are not c. ETFs were created in the 1990s; mutual funds were created earlier d. All of the above e. None of the above
D. All of the Above
The use of an overlay manager in a UMA provides a. expertise across multiple investment opportunities b. asset allocation decisions c. rebalancing efficiency d. all of the above
D. All of the above
Defining retirement by stages is helpful for: a. Understanding and creating a plan for a comfortable retirement b. Helping a client understand the retirement process and how to prepare for it financially c. Neither of the above d. Both of the above
D. Both of the Above
The following are typical challenges that an investor may have: a. A risk of outliving his or her assets. b. A need for a predictable income stream. c. Neither of the above. d. Both of the above.
D. Both of the Above
There are basically three ways that an advisor can do research to select investments. This does NOT include: a. Using a system provided by their firm. b. Using a research and analytics tool that they purchase. c. Visiting/talking with managers themselves. d. Throwing darts at a board that they create.
D. Darts?!?!?
In what type of solution are the investor's assets allocated via a third party money manager managing to a single, specific style via individual securities? a. Mutual Fund Advisory Account b. Exchange-Traded Fund (ETF) Account c. Unified Managed Account d. Separately Managed Account
D. Seperately Managed Account
This can be defined as a retirement savings program for individuals, in which yearly tax-deductible contributions up to a specified amount can be made. The contributions are not taxed until withdrawal and, generally, cannot be withdrawn before age 59½ without incurring a 10% federal income tax penalty. a. 401(k) b. Defined Benefit Plan c. Annuity d. Traditional Individual Retirement Account (traditional IRA)
D. Traditional Individual Retirement Account (traditional IRA)
An all-inclusive fee based on percentage of the assets benefits: a. The client b. The advisor c. Neither of the above d. Both of the above
D. both
What is the major driving force that created today's global, 24-hour investing marketplace? a. Client needs. b. Advisor demands. c. Government regulations. d. All of the above. e. a and b. f. b and c.
E. A&B
Mutual funds are bought: a. On a stock exchange b. Through a broker-dealer c. Directly through the fund d. a. and b. e. b. and c.
E.
The following are all integral parts of the global wealth cycle. a. Investors b. Financial institutions c. New or growing businesses d. None of the above e. All of the above
E.
The following is/are stage(s) in the client life cycle: a) Accumulation phase b) Education phase c) Draw-down phase d) Transition phase e) All of the above except b f) All of the above except c
E.
The following should be considered when developing a strategic asset allocation for an end-client. a) Expected return b) Expected risk c) The relationships between securities in the same portfolio d) Investment policy statement e) All of the above
E.
Which of the following is NOT a feature of Exchange-Traded Funds (ETFs)? a. The ETF can be traded within a day b. The ETF can be purchased on margin c. The ETF can be shorted d. The ETF is comprised of a basket of stocks e. All of the above are features of ETFs
E.
Which of the following is/are TRUE regarding the investment policy statement? a) It is a living, changeable document b) It is typically signed off on by multiple parties c) It includes an assessment of the client's risk tolerance d) It is arguably the most important process in a client relationship e) All of the above f) All of the above except for a.
E.
An overlay manager would use UMH technology to: a) Rebalance across multiple registrations b) Look for securities overlap across the household c) Perform analysis across multiple custodians d) Provide efficient drawdown strategies e) all of the above
E. All of the Above
Some examples of some planning exercises are: a. Retirement planning. b. Tax planning. c. Budget planning. d. Income planning. e. All of the above are planning exercises. f. All of the above are planning exercises except d.
E. All of the Above
What can be contained in a UMA? a. Emerging market ETFs b. Alternative investments c. International mutual funds d. None of the above e. All of the above
E. All of the Above
Which of the following statements are TRUE regarding a 529 savings plan? a. The plans are named after section 529 of the Internal Revenue Code b. The plans are one of the best ways to save for college costs. c. The earnings in a section 529 plan grow tax-free. d. There is no federal income tax on money withdrawn from a section 529 plan as long as it is used for qualified educational expenses. e. All of the above statements are true. f. None of the above statements is true.
E. All of the Above
Post-2008 baby boomer mindset has caused the following: a. Increased savings and decreased debt b. Focusing on liability management and longevity planning c. Shifting to a needs-based approach d. Seeking financial advice e. All of the above f. None of the above
E. All of the above
The Research and Monitoring phase of the advisory life cycle relies on systems that allow for: a. Portfolio analytics. b. Research and content. c. Performance review. d. Client portal. e. All of the above.
E. All of the above
Technology systems are involved in which step of the advisory work cycle? a. Information Gathering. b. Planning/Proposal. c. Implement. d. Monitor. e. Every step of the advisory work cycle relies on technology systems
E. Every Step uses Technology
In a fee-based price, or wrap fee, which is charged separately to the client? a. The fee for performance reporting, if requested more frequently than quarterly b. The trading fees c. The fee paid to an independent professional money manager d. The financial advisor's fee e. None of the above; all are included in a wrap fee
E. None of them
Which is/are an example(s) of an alternative investment? A. Real Estate B. Commodities C. Futures D. Financial Derivatives E. None of the Above F. All of the Above
F.
Which of the following is/are macroeconomic indicator(s)? a) GDP b) Inflation c) Unemployment d) Corporate Earnings e) All of the above are macroeconomic indicators except for d f) All of the above are macroeconomic indicators
F.
Which is/are an example of an alternative investment? a. Real Estate b. Commodities c. Options d. Financial Derivatives e. None of the Above f. All of the Above
F. All of the above
Most experts consider which of the following to be the best benchmark available to judge overall U.S. market performance: a) Dow Jones Industrial Average b) Russell 2000 Index c) S&P 500 d) Barclay's Capital Aggregate Bond Index
S&P 500
Client portals will allow a client to see basically all of the information regarding his/her account as of the day before. a. True. b. False.
a. True
