All Small Question Sets
Investment advisers may be formed as:
Partnerships Corporations Associations
Which of the following advertisements used by an Investment Advisor would be acceptable?
"Good Guy Advisors offers investment advisory services catered to each individual investor, so come in for a consultation. Disclosure: Any past performance figures shown are not indicative of future results.
In what scenarios would the individual giving advice NOT have to register as an investment adviser under the Investment Advisers Act of 1940?
- A college professor discussing with her finance students that historically equities have provided greater returns than other asset classes over the long-run. - An attorney gives some general financial advice to a client regarding her estate in the course of a regular meeting. - A broker-dealer that has advisory services which are incidental to their overall operations and charge no extra compensation for this service.
Which of the following would be required to register as an investment adviser under the Investment Advisers Act of 1940? - A person that is paid to be a sports representative for an all-pro football star, who makes recommendations regarding investments, negotiates his contracts and manages his financial affairs. - A person that is a pension consultant, who receives a fee to advise employee benefit plans and other fiduciaries regarding the investments in the plan. - A person that is an art consultant, who is paid a fee to advise wealthy investors on the purchase or sale of art.
- A person that is paid to be a sports representative for an all-pro football star, who makes recommendations regarding investments, negotiates his contracts and manages his financial affairs. - A person that is a pension consultant, who receives a fee to advise employee benefit plans and other fiduciaries regarding the investments in the plan.
Which of the following would be relevant factors when calculating Current Yield on a Bond? - Semi- Annual Interest payments - Annual Interest - Current Market price of the bond - Time remaining until maturity
- Annual Interest - Current Market price of the bond
When it comes to limited liability companies (LLCs) and corporations, which of the following would be true? - Both forms of business offer investors limited liability. - Both forms of business are more complex to organize than a sole proprietorship. - Both forms of business are suitable for a wide variety of business models. - Both forms of business have equivalent taxation benefits.
- Both forms of business offer investors limited liability. - Both forms of business are more complex to organize than a sole proprietorship. - Both forms of business are suitable for a wide variety of business models.
Which two of the following would be included in the definition of unsystematic risk? - Risk tied to all securities - Business risk associated with one individual company - Market risk - Credit risk associated with one individual company
- Business risk associated with one individual company - Credit risk associated with one individual company
Under the Investment Advisers Act of 1940 an investment adviser would be required to register if they answer "yes" to which of the following?
- Does the person give advice about securities - Is this person in the business of giving advice about securities - Is this person compensated for giving advice about securities
What are the two primary differences between an open-end investment company and a closed-end investment company? - Open-end investment companies have a fixed capitalization, while the capitalization of a closed-end investment company is constantly changing. - Open-end investment companies have a capitalization that is constantly changing, while the capitalization of a closed-end investment company is fixed. - Open-end investment companies offer redeemable shares, while closed-end investment companies offer shares that sell in the primary market, but then trade in the listed or OTC markets. - Open-end investment companies offer shares that sell in the primary market, but then trade in the listed or OTC markets, while closed-end investment companies offer redeemable shares.
- Open-end investment companies have a capitalization that is constantly changing, while the capitalization of a closed-end investment company is fixed. - Open-end investment companies offer redeemable shares, while closed-end investment companies offer shares that sell in the primary market, but then trade in the listed or OTC markets.
Under the Investment Advisers Act of 1940, if an investment advisory firm decides that it would like to disclose its registration status, which of the following is true with regard to this disclosure? - Such disclosure may be made in the company's advertising if it states that the company if registered in accordance with the Investment Advisers Act of 1940. - Such disclosure may be made in the company's advertising if the company discloses that such registration means that the IA has been federally approved and verified. - Such disclosure means that the IA is registered in accordance with the Investment Advisers Act of 1940 but does not imply approval or verification. - Such disclosure means that IAs registration has been sanctioned by the SEC.
- Such disclosure may be made in the company's advertising if it states that the company if registered in accordance with the Investment Advisers Act of 1940. - Such disclosure means that the IA is registered in accordance with the Investment Advisers Act of 1940 but does not imply approval or verification.
An investor who chooses to buy shares of an index fund instead of investing in various securities would most likely hold which two of the following beliefs? - The investor likely believes that the market is inefficient. - The investor likely believes that the market is efficient. - The investor likely believes that he is unable to find undervalued stocks or stocks that will out-perform the market in the coming time period. - The investor likely believes that he is able to find undervalued stocks or stocks that will out-perform the market in the coming time period.
- The investor likely believes that the market is efficient. - The investor likely believes that he is unable to find undervalued stocks or stocks that will out-perform the market in the coming time period.
A conservative investor with a large portfolio of blue chip stocks decides to sell a couple of call options on several of the larger stock holdings in his portfolio. Which of the following would be correct regarding this scenario? - The investor will be covered with the stock contained in their portfolio and would not have to put up margin requirements for uncovered sale of calls. - The investor would not be covered with the stock contained in their portfolio and would have to put up margin requirements for the uncovered sale of calls. - The investor can expect to exercise the calls and make money from the difference between the strike price and the market price at the time of exercise. - The investor can expect to receive premium income from the sale of the calls.
- The investor will be covered with the stock contained in their portfolio and would not have to put up margin requirements for uncovered sale of calls. - The investor can expect to receive premium income from the sale of the calls.
An investor wishes to minimize risk in his common stock portfolio. He may accomplish this by investing so that: - The largest percentage of the securities in the portfolio are affected differently by economic conditions. - The largest percentage of the portfolio consists of leading common stocks. - The smallest percentage of the portfolio consists of leading common stocks. - The smallest percentage of the securities in the portfolio are affected differently by economic conditions.
- The largest percentage of the securities in the portfolio are affected differently by economic conditions. - The largest percentage of the portfolio consists of leading common stocks.
George has been investing for many years when he learns that his agent/IAR is losing their registration status because of violations of securities regulations. George decides to transfer his account to another firm and start out with a clean slate. When George transfers his account, the new agent/IAR finds that George has been invested into 4 mutual funds from different providers at equal amounts, all of which have essentially the same portfolio. The new agent/IAR also sees that George's former adviser was buying and selling at arbitrary times, often buying high and selling low in varying amounts. In order to set George's account straight, which two of the following would be appropriate, given the information discussed? - The new agent/IAR should discuss consolidating or further diversifying with the funds that are spread out amongst the 4 essentially identical mutual funds, possibly even achieving breakpoint discounts in one fund or gaining different investments with funds that differ. - The new agent/IAR should pressure George into increasing his risk tolerance, since the previous agent had lost a substantial amount of money for George and over-charged him for transaction fees. - The new agent/IAR should discuss the possibility of a Constant Dollar Plan or Dollar Cost Averaging, which will give some structure to the way George invests in the market. - The new agent/IAR should discuss the possibility of a day-trading approach to George's account where the agent/IAR has trading authority and uses market timing to attempt to maximize profits.
- The new agent/IAR should discuss consolidating or further diversifying with the funds that are spread out amongst the 4 essentially identical mutual funds, possibly even achieving breakpoint discounts in one fund or gaining different investments with funds that differ. - The new agent/IAR should discuss the possibility of a Constant Dollar Plan or Dollar Cost Averaging, which will give some structure to the way George invests in the market.
If a security is considered "listed," which of the following are TRUE of this situation? - The security is traded on the floor of an exchange where buyers and sellers meet to execute trades through a designated market maker. - The security is traded off of the floor of an exchange through market makers. - The security will be sold in an auction-style market. - The security will be sold in a negotiated market
- The security is traded on the floor of an exchange where buyers and sellers meet to execute trades through a designated market maker. - The security will be sold in an auction-style market.
When calculating net present value, which of the following components are discounted back to a present value to determine the net present value? - Year-to-year inflows throughout the project - Annual computations of the holding period return - Anticipated opportunities in other investments - Anticipated return of capital upon project completion
- Year-to-year inflows throughout the project - Anticipated return of capital upon project completion
Which of the following would be excluded from the definition of investment adviser under the Investment Advisers Act of 1940? - banks which are not investment companies - all lawyers - publishers of bona fide financial publications of general and regular circulation - teachers whose performance of investment advisory services is solely incidental to teaching
- banks which are not investment companies - publishers of bona fide financial publications of general and regular circulation - teachers whose performance of investment advisory services is solely incidental to teaching
An investor owns stock in two companies for which he wants to calculate the net total return in dollars for one year. He bought company A shares for $10 per share and sold them a year later for $15. per share. During the year he received a $1. per share cash dividend. He bought company B shares for $30 per share and sold them for $20. per share one year later. He did not receive any dividend on company B shares during the year. His net total return in dollars per share is:
-$4.
The Administrator of California sends a request for financial statements to a small broker-dealer firm. Which of the following are requirements? -For firms registered at the Federal and State levels, the State cannot force additional recordkeeping requirements that exceed the Federal requirements. -For firms registered at the Federal and State levels, the firm must provide all of the financial statements that are required by the SEC to the Administrator, as well as any additional financial statements which may be required by the State. -For firms registered at the Federal and State levels, duplicate financial statements must be sent to all States, regardless of whether the firm is registered in that State or falls under the definition of a broker-dealer in that State. -For firms registered at the Federal and State levels, SEC-required financial statements must be sent to all States where the broker-dealer is registered and there is a requirement to provide such financial statements.
-For firms registered at the Federal and State levels, the State cannot force additional recordkeeping requirements that exceed the Federal requirements. -For firms registered at the Federal and State levels, SEC-required financial statements must be sent to all States where the broker-dealer is registered and there is a requirement to provide such financial statements.
During the first years after the purchase of a long term investment grade bond, the bond would be most affected by which of the following types of risks?
Interest Rate
In addition to being taxed at ordinary income tax rates, how will a premature distribution from a traditional IRA generally be taxed?
10% penalty tax
Which of the following SEC filings is used to give a comprehensive quarterly performance report for a publicly traded company?
10-Q
Under the Investment Advisers Act of 1940, records must be retained for:
5 years
Assuming stable interest rates and a stable real estate market, which of the following is likely to carry the most significant amount of risk?
A $100,000 down payment on a $250,000 property that is considered raw land
George has been looking into buying a bond for his portfolio. His greatest investment objective is total return. Which of the following bonds would be the BEST choice for George with this objective in mind?
A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%
Which of the following statements describes one of the primary reasons to establish a general partnership?
A general partnership would be established so that more than one individual could operate a business as co-owners.
What most accurately describes a taxable termination?
A scenario where the primary beneficiary of a trust dies and assets pass to a remaining individual or individuals who were not primary beneficiaries of the trust, subjecting the trust assets to taxation.
All of the following are characteristics of a put option EXCEPT:
An options trader would buy a put if he expects the price of the underlying asset to rise.
What is the PRIMARY benefit of using a benchmark index?
Allows measurement of performance of a security or portfolio against market performance
According to the Investment Company Act of 1940, all of the following statements are true except
An affiliated person of a mutual fund is prohibited from investing in the fund's shares.
In what scenario would the individual giving advice have to register as an investment adviser under the Investment Advisers Act of 1940?
An agent of a broker-dealer provides financial planning services to clients who are willing to pay for the service.
Under the Uniform Prudent Investors Act a trustee shall act impartially in investing and managing the trust assets, taking into consideration
Any differing interests of the beneficiaries of the trust when there are multiple beneficiaries
An ideal prospect for a variable-universal life insurance policy is someone who has high investment risk tolerance. Also, the prospect should understand all of the following key provisions of the policy EXCEPT:
Policy loans are not available
If a bond has a Coupon Rate of 8% and a Basis of 7%, the bond is trading at a?
Premium
Bob is a Limited Partner for a DOG Limited Partnership. DOG LP sold 20% of their assets in December of 2015, but did not distribute the gains until January of 2016. What is the Bob's tax liability?
Capital gain taxable in 2016
According to anti-money laundering regulations, which of the following must be reported to federal authorities?
Cash deposits of more than $10,000
Of the following, which best describes the categorization of market capitalization of the U.S. stock market?
Categorized into small, midsize, and large capitalization securities
If a broker-dealer changes the location of its offices, what actions, if any, must the broker-dealer take with regards to its registration on file with the state?
Change must be reported promptly
An individual is attempting to determine if it is necessary to register as an investment adviser due to the nature of some of their activities. The individual only works with accredited or qualified clients. How does this affect registration requirements? The clients of the adviser are all either Qualified or Accredited Investors.
Clients being accredited or qualified would not affect registration requirements or exemptions.
Which of the following would be LEAST susceptible to risks associated with inflation and interest rate movements?
Common stock
The process of calculating future value is also called
Compounding
Communication with the Public rules state that all of the following are true about the classification "correspondence" except?
Correspondence excludes electronic communications.
A Zero Coupon Bond is also referred to as which of the following?
Deferred Interest Bond
The intent of ERISA (Employee Retirement Income Security Act) is to protect the funds within an employee retirement fund from which of the following?
ERISA is designed to protect retirement funds from poor management by an employer who handles the company retirement policy.
If an individual uses all aspects of a company's annual report and the current market price of a stock to identify whether or not to invest in the company, this individual is most likely using
Fundamental Analysis
A mutual fund which includes common stock of domestic and foreign issuers is defined as which of the following?
Global Mutual Fund
Income in a revocable trust is taxed at which of the following tax rates?
Grantors
A registered investment adviser is organized as a sole proprietorship. The IA recommends a particular stock to all of his clients. He discloses that he also owns stock in the company, but fails to disclose that he also receives a fee for managing the company's pension plan investments. Which of the following is a true statement?
He has acted unethically because he did not disclose his management fee.
Under the Investment Advisers Act of 1940, if a person gets a cash fee for soliciting advisory business, what requirements must be met? I. Written disclosure must be made to the clients. II. The Solicitor must be affiliated with the company. III. The solicitor must not currently be subject to regulatory suspensions or limitations. IV. The solicitor must be a fully-registered Federal Covered Adviser.
I. Written disclosure must be made to the clients. III. The solicitor must not currently be subject to regulatory suspensions or limitations.
Which of the following would be considered a form of market timing? I. Passive Asset Allocation II. Tactical Asset Allocation III. Strategic Asset Allocation IV. Active Asset Allocation
II. Tactical Asset Allocation IV. Active Asset Allocation
When working with Internal Rate of Return (IRR) and Net Present Value (NPV), which of the following is TRUE?
If a net present value of $0 is found, it is accurate to say that you have found the IRR of a project or investment.
This is FALSE regarding IRA contributions:
If an extension for a tax return is obtained, the IRA contribution may be delayed until the date the tax return is filed.
A fixed income security has as its greatest risk, which of the following?
Inflationary risk
Which of the following types of risk would apply most to an investor that purchased a Variable Annuity Contract?
Investment risk
What is a benefit provided by investment in emerging markets and international securities?
Investors can add more diversification to their portfolio by adding investments in these types of markets.
A dollar-weighted rate of return does NOT:
It facilitates manager to manager performance comparisons.
Bob is an experienced investment adviser. He has a client, Louise, who has a significant amount of capital and a significant amount of investment experience in many different products and securities. Bob comes across a great investment opportunity for Louise. The investment is a limited partnership interest. Unfortunately the partnership interest must be held for a minimum time period of 1 year and can only be sold at 6-month intervals thereafter with the approval of the general partner. Bob still feels that the investment fits into Louise's investment objectives and risk tolerance profile. Which of the following is the MOST IMPORTANT aspect of this investment that Bob should discuss with Louise?
It is most important for Bob to discuss the liquidity risk that Louise will be exposed to when it comes to this limited partnership interest.
Which of the following would be an example of an individual who has adequately diversified within a particular type of investment class, but is still exposed to market risk?
Jane splits her money equally between three mutual funds, one covering small-cap stocks, one covering mid-cap stocks, and another covering large-cap stocks.
A customer is considering investing in a structured note. One of the risks her adviser discusses is that if the customer does not hold the structured note until maturity, the customer may not be able to sell the note in the secondary market. This risk is best described as
Liquidity Risk
All of the following types of risk would be considered systematic risks EXCEPT
Liquidity risk
Ron is in his 80s and has seen several of his friends pass away. He wants to avoid tough decisions for his family when his time comes and he has certain wishes when it comes to medical treatment and directives. Which of the following would be the MOST appropriate of the choices listed for Ron to specify his wishes?
Living will
By diversifying, investors
Lower their risk
Clients who may need quick liquidity including clients creating an Emergency Fund or providing for cash available to senior investors would find it best to invest in which of the following?
Money Market Fund
Under the Investment Company Act of 1940, the offering price of a mutual fund share is determined by:
NAV + sales charge
The interest rate stated on the face of a bond is also known as the
Nominal Yield
Which of the following best describes Dollar Cost Averaging?
On a regular basis, the investor purchases the same dollar amount of securities, regardless of the price of shares or the number of shares purchased.
Exchange markets are NOT characterized by
Prices are determined by negotiation.
Which of the following is a characteristic that is shared by both a partnership and an S Corporation?
Profits and losses are passed on to the owners for tax purposes.
Which of the following statements regarding the sales loads charged on mutual funds is FALSE?
Redemption fees are a form of back-end sales load.
A financial planner determines that a client may be facing complex tax issues if steps are not taken to correct the situation. The IAR should do which of the following?
Refer the client to a tax accountant
Family Trust Investment Advisory Firm, a Federal Covered Adviser, has been in business for 7 years and has not maintained custody of client funds. The IA decides that they will now maintain custody of client funds. Upon taking custody of clients funds the IA would NOT have to:
Register as a BD with the SEC
A fee charged to a customer who buys shares of some mutual funds and is normally paid "up-front" describes which of the following?
Sales Load
Put the following in the proper order of asset distribution upon the liquidation of a corporation: Common Stockholders Secured Debt Unsecured Debt Preferred stockholders
Secured Debt Unsecured debt Preferred SH Common SH
Which of the following best describes altering the asset mix of a portfolio over the long term to maintain assigned balances?
Strategic Allocation
All of the following are characteristics of a traditional equity indexed annuities EXCEPT:
Supervision of sales of this product is not required since it is not treated like a security.
Of the following types of plans, which may ONLY be established by a non-profit organization?
Tax-deferred annuity retirement plans (403b plans)
One of your customers is divorced from a worker who is eligible for Social Security retirement benefits. While talking about retirement planning, the question comes up about whether your customer would also be eligible for benefits. You should explain:
That a divorce spouse continues to qualify for spousal benefits or survivor benefits if the marriage lasted 10 years or more
When using DCF to evaluate the impact of increasing interest rates in the market, what affect would it have on new bonds in the market?
The DCF on new bond will increase.
When do you have to file the Form 8-K?
The Form 8-K has to be filed within four business days after the event.
Of the following types of returns listed, which best defines the following equation? (Final Value - Initial Cost + Income) / Initial Cost = ?
The Holding Period Rate of Return of an investment/project
This is FALSE in regard to custody of client funds under the Investment Advisers Act of 1940?
The IA is required to be registered as an IA and also registered as a Broker-Dealer.
Non-exempt issuers are required to file registration statements with which of the following entities under the 1933 Act?
The SEC
An adviser is not the custodian of a client's account. The client wants to make a purchase but in paying for the purchase, makes out a check payable to the adviser. The adviser does not want to take custody of any of the client's funds. Which of the following best describes the actions that the adviser should take?
The adviser should inform the client of the error, return the check to the client, and request that the client send a new check to the custodian of the account.
A pension consultant receives compensation for advising an employee pension fund. Under the Investment Advisers Act of 1940, which of the following advice on securities would require the pension consultant to register as an investment adviser (IA)?
The allocation of the assets of the plan between securities and other securities-related investments
If the current rate of return on a 3-month Treasury Bill is subtracted from the total return of an investment, which of the following is likely the case?
The analysis is subtracting the current risk-free rate of return.
Which of the following is NOT a consideration that a trustee must make when investing and managing trust assets?
The beneficiary's heir's monetary expectations
A client is looking for growth and future income in an investment product, but does not want to pay taxes on earnings until they are withdrawn. How should this client invest?
The client should open up a variable annuity and begin contributions immediately.
In which of the following scenarios is an investment advisory firm REQUIRED to register with the SEC as a Federal Covered Adviser?
The firm manages over $150 million in assets within one state only.
An investor purchased stock at $5/share in 2000. The stock's market price has increased to date to $100/share. The investor wishes to ensure that if the market price goes down and drops to $75, that the stock will be sold around that price to ensure that some of their profits are locked in. What type of order would best suit this investor's needs?
The investor should enter a stop order to sell at $75.
The Dow Jones Industrial Average is
The market price of 30 selected common stocks divided by a constant.
The "inflation-adjusted return" is also known as:
The real return
In the course of making a few phone calls, you contact a prospective client who has a substantial investment account fully invested in ABC mutual fund. The prospect decides to hire you as their investment adviser. About a month later, you discover a similar fund is available with the same level of risk but with higher anticipated yields than ABC fund. What is an accurate description of this scenario?
This scenario shows the opportunity cost of being fully invested.
Why would a person who wins the lottery, take the full distribution today as opposed to taking distribution in periodic payments?
Time Value of Money
The combined income and capital growth (or loss) earned by an investment is known as the investment's
Total Return
An investor is looking over the pros and cons of several retirement plans. She wants to invest funds that she is not required to withdraw at any given time, since she intends to continue working well into her 70s. Which of the following would be INAPPROPRIATE for this investor?
Traditional IRA
Under traditional prudent investor rules, which of the following would most likely be an acceptable investment?
Treasury Bills
A hedge fund discloses to a prospective investor that it is a high frequency trading firm and a market maker in certain stocks. The prospective investor should understand from this disclosure that the hedge fund will NOT:
Usually will hold its positions over night
You are looking over a few prospective investments for a client and you stumble across a company that interests you. It is a large company that has been in business for over 50 years and has paid regular dividends that exceed industry standards, while maintaining a price-to-earnings ratio that is well below industry standards. The company has little or no outstanding debt and prides itself on keeping enough capital in various accounts to maintain business with no revenues for over a year. From an investor's perspective, this would be classified as which of the following types of stock?
Value
An investor or portfolio manager that focuses on the fundamentals of a company including its balance sheet, income statement, and book value would be known as which of the following?
Value Investor
The policyholder bears the investment risk in which of the following life insurance products?
Variable Life
The objectives of capital growth would most likely be suitable for
Young Investors
What is TRUE regarding IRA contributions?
[A]Although a tax return is filed prior to April 15th, the IRA contribution may be delayed until April 15th.[B]Contributions may be made at any time between January 1st and April 15th of the following year. [D]Persons not participating in any other type of retirement plan may deduct their IRA contributions up to certain limits.
All of the following are TRUE about a dollar-weighted rate of return:
[A]It measures how much a particular investor's investment dollars returned on average. [B]It includes the investor's contributions and withdrawals. [C]It is calculated using the internal rate of return method.
variable-universal life insurance policy characteristics
[A]The death benefit and cash values are variable [B]The policyholder bears the investment risk [C]The premium payments may be flexible [D]Policy loans are available
Exchange markets are characterized by all of the following:
[B]Prices are determined by auction. [C]Market makers are called specialists. [D]The securities traded are called listed securities.
Under SEC Rules, which of the following persons is defined as an "investment adviser"? [A]A professor who teaches a class open to the general public on investments. [B]An insurance agent that sells insurance products to customers for compensation. [C]A financial planner who charges no management fee for a financial plan but who takes commissions on recommended securities transactions. [D]A broker-dealer that recommends securities transactions to clients but does not charge for the recommendations.
[C]A financial planner who charges no management fee for a financial plan but who takes commissions on recommended securities transactions.
A portfolio manager that you know regularly purchases stocks when other portfolio managers are selling those stocks. Which best describes this portfolio manager's investment strategy?
contrarian investing
What is the focal point of fundamental analysis?
find undervalued companies through evaluation of various aspects of a company's financials and buy undervalued stocks where the stock price would be expected to increase.
All of the following are tests that are considered to determine if one is defined as an "investment adviser" that must register with the SEC EXCEPT whether that person:
has previously been registered with the SEC.
The Sharpe ratio measures the:
risk-adjusted rate of return relative to portfolio volatility
An investor has a broadly diversified portfolio of blue chip stocks. The use of index options to hedge the portfolio would reduce
systematic risk.
Sharon is a day trader. She watches the price trends of various stocks, plots support and resistance levels, and focuses on patterns in order to make her investment decisions. Sharon is using
technical analysis, where the ultimate goal is to identify trends in the price fluctuations of the stock and buy when an upward trend is expected.
The required records of an Investment Adviser may be stored in electronic format if:
the IA organizes the records so as immediate access to them is available
Payments from a mutual fund that are received by an investor
will always reduce the Net Asset Value (NAV) of the mutual fund, regardless of the type of distribution, any reinvestment plan, or the investor's tax status.
A current and updated amendment to an Investment Adviser's registration must be electronically filed with the SEC according to the Investment Advisers Act of 1940 how often?
within 90 days from the close of the Investment Adviser's fiscal year
The internal rate of return (IRR) is the discount rate where net present values of inflows and outflows are set equal to
zero
