B. I and IV This income includes rents, mortgage interest earned, gains on property sales, income from foreclosed properties, and real estate tax refunds received (as a source of income, an REIT can buy a property and attempt to get its tax assessment lowered - any resulting tax refund is income to the REIT). Fund dividends are taxable, whether or not they are automatically reinvested in additional fund shares. Multiple select question. II and IV, The owner of a variable annuity has all of the following rights EXCEPT the right to vote: Both Treasury bonds and Treasury notes make semiannual interest payments. Multiple choice question. The shares are not redeemable; they are negotiable. They invest in commercial paper, CDs and repurchase agreements b. are certificates traded in US markets representing ownership in shares of domestic companies. requiring minimum initial fund capital of $100,000, A fund that distributes at least 90% of its Net Investment Income to shareholders is termed a(n): It appears that the representative has violated industry firewall requirements, because registered representatives are prohibited from talking to the administrative personnel of mutual fund companies. premium Cul es la forma correcta del presente indicativo o subjuntivo del verbo en parntesis? any price because this is negotiated in the market. D. Fixed dollar, ERISA regulations cover: Over the past 5 years, the fund has appreciated to $46,000. If a customer is close to a breakpoint, it is a violation to not make the customer aware that putting in the additional funds to reach that level will result in a lower sales charge. $19 x 100 shares = $1,900 received upon redemption. A B $9,450B. IV Funds with the same investment objectives will have the same risks, A mutual fund has a Net Asset Value per share of $46.00 and the following breakpoint schedule. Correct Answer C. Fixed percentage The manager of an unregistered hedge fund charges a fee of 2 and 20. This means that investors are charged a(n): A. annual management fee against net assets of 2% plus a performance fee based on exceeding a benchmark index by 20%B. Experts are tested by Chegg as specialists in their subject area. Net Asset Value per share for a mutual fund can be expected to decrease if which of the following occur(s)? C An open end fund has a Net Asset Value of $10 per share. II and IV. (If market interest rates rise, both stock and bond prices are negatively impacted. I, II, III D annual management fee against net assets of 20% plus a performance fee based on exceeding a benchmark index by 2%D. The representative has committed a violation known as a breakpoint saleD. II and III onlyD. C Ch 2 exploring data with tables and graphs, Customer Accounts Section 2: Account Basics, The Language of Composition: Reading, Writing, Rhetoric, Lawrence Scanlon, Renee H. Shea, Robin Dissin Aufses, Edge Reading, Writing and Language: Level C, David W. Moore, Deborah Short, Michael W. Smith, Literature and Composition: Reading, Writing,Thinking, Carol Jago, Lawrence Scanlon, Renee H. Shea, Robin Dissin Aufses. Fill in the blanks to complete the sentence. Acme is the sponsor for a variety of funds within the Acme family. The ACME family has an exchange feature at NAV. II The REIT issues shares of beneficial interest representing an undivided interest in a pool of real estate investments A When a fund pays either a dividend distribution or capital gains distribution, the NAV per share is reduced on the ex date to reflect the lower per share value. dividends at POP and capital gains at POP. Well, you can get this one down to 50/50 pretty quickly. (The maximum sales charge on a mutual fund is 8.5% under FINRA rules. $1,039 plus a commission. A. I Interest rate risk D On that date, the price of the shares is reduced for any distributions. Furthermore, the longer maturity and lower coupon issues fall the fastest as market interest rates rise. I and IV only Mutual funds that have an automatic reinvestment provision must reinvest: A. dividends at NAV and capital gains at NAVB. III and IV only A mutual fund has a net asset value per share of $9.45. The members of the board of directors are elected at the annual meeting. An engineer prepares a report to evaluate a project using PW and IRR. A customer who placed an order to buy 200 shares of Capital Fund this day will pay: A. A bond ETF profits when prices rise. Management companies are subclassified as either: A. open-end or closed-endB. Which statement is TRUE regarding a Step-Down Certificate of Deposit? One specific type of violation is market timing - the practice of frequently buying and selling a funds shares to exploit inefficiencies in how the mutual fund company computes NAV per share. Inverse (Short) S&P 500 Index ETFC. D. II and III, C. I and IV Fund Net Asset neither futures contracts nor call options, Ch. This will occur if the fund gives an inferior return. C A. Multiple select question. Which of the following statements are TRUE regarding the "AIR" stated in a variable annuity prospectus? II and IIID. In such a comparison, the Standard and Poors Index Return is the benchmark return against which the funds return can be compared. strike or striking price Fixed percentageD. Mortgage REITs Nos urge encontrar a una estudiante que ____ (ser) muy artstico para hacer pinturas de las diosas. regulated fund The term mutual fund is the common name for a(n): A. open end management companyB. The BEST recommendation would be for the customer to invest $100,000 of her cash savings into a(n): Which statements are TRUE regarding money market funds? on a typical Wednesday. B. Inverse (Short) S&P 500 Index ETF 1 When compared to stocks or corporate debt issues, the risk to principal is generally quite low. will increase 3 business daysC. I, II and IIID. Thus, they are similar to closed-end investment companies under the Investment Company Act of 1940, except that investments are made in real estate and mortgages, instead of in securities. $10,450D. If prices rise, smaller dollar purchases must be made; while if prices fall, larger dollar purchases must be madeD. Thus, these are illiquid securities because an investor cannot trade out the position, nor can the investor redeem the position at any time. What is the customers maximum potential loss? B D. II and IV, D. II and IV ready marketability of sharesC. I Hedge funds are subject to little regulatory oversight II Hedge funds must register as management companies under the Investment Company Act of 1940 . C. II and III If the market rises, the customers loss can be infinite. B III Capital Gains IV If the mutual fund makes dividend distributions to shareholders, the Net Asset Value per share is unaffected may correspond to ownership of a fraction of a foreign share The registered representative should make the customer aware of the tax consequences of exchanging mutual fund sharesB. If the shares are trading in the market at a discount to NAV, institutional investors can buy new creation units and short the equivalent shares that compose the units, in an arbitrage trade. A. A 200% Leveraged Dow Jones Industrial Average Index ETF would be expected to move: I up 50% in price when the DJIA moves up 100%II up 100% in price when the DJIA moves up 50%III down 50% in price when the DJIA moves down 100%IV down 100% in price when the DJIA moves down 50%, A leveraged ETF uses borrowing (margin) and options to magnify price movement as compared to the reference index. Bid; Net Asset ValueB. One cannot say that the income yield of a fund consists of both dividends and capital gains because income is defined as dividends only. interval fundD. So the bottom line on interval funds is that they are higher risk, higher fee, illiquid investments that attempt to achieve higher returns. IV Whether the customer can handle declining benefit payments in retirement D On that date, the price of the shares is reduced for any distributions. The US Department of Energy has assessed that the Covid-19 pandemic most likely came from a laboratory leak in China, according to a newly updated classified intelligence report. Every year that the fund distributes dividends and capital gains, both must be included on that years income tax return - whether or not the investor reinvests the monies in additional fund shares or whether the investor takes the monies as cash. They have relatively low credit risk. The customer starts with 200 shares at $50, or a $10,000 position. A. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares A. Ask; Redemption Price. It must be adjusted for stock splits. The representative has acted properly - no additional disclosures are required to be made to the customerB. A fund that distributes at least 90% of Net Investment Income to shareholders is regulated under Subchapter M of the Internal Revenue Code and pays no tax on the distributed amount. Buying a security into inventory directly from a customer with a mark-down. D. $1,025 plus a commission, D. $1,025 plus a commission Which is considered money in the U.S. economy? Thus, they are only suitable for relatively risk tolerant, sophisticated investors. Any excess funds can be invested in securities, such as U.S. I The income yield of the fund consists of both the dividend distributions and the capital gains distributionsII If you buy the fund with a few friends, the purchase will be large enough for a breakpointIII Buy the fund shares now just before the dividend is paid so you can get immediate incomeIV Buy shares of different funds of the same sponsor and the total purchase qualifies for a breakpoint, A. I and IIIB. requiring minimum initial fund capital of $100,000. D that day's closing Net Asset Value, Series 7: Retirement Plans (Education And Hea. Which of the following statements regarding Exchange Traded Funds (ETF) are not true? In the study, the economist learned that 112,236 tax filers left the state of New York. >$20,000 - $45,000 6 % If the securities in the fund portfolio pay dividends, these are received by the Fund. These 3 funds all have different sponsors. Nothing, since the account value is over $50,000B. Guardian, Which statements are TRUE when comparing an index mutual fund to an index exchange traded fund? Inverse (Short) 20+ Year Treasury ETF. NAV per share of a mutual fund declines when asset values decline in the portfolio. $745 II Periodic payments of varying dollar amounts are made Which of the following statements are correct regarding commercial paper? This action is: A. appropriate for the customerB. 5%, CLOSED END BOND FUNDS This fund family has an exchange feature at NAV, which means that shares of one fund can be redeemed and reinvested in shares of another fund within the family without any sales charge. A $90 per shareD. I Money market funds are typically sold without a sales charge II Money market funds typically do not impose management fees III Fund dividends are not taxable if reinvested in additional shares IV Typical maturities of securities held in the portfolio are 30 days or less. a violation known as spinningD. A mutual funds expense ratio has been increasing over the last 4 years. D. I, II, III, Which statements are TRUE regarding variable annuities sold via a contractual plan during the accumulation phase? The initial offering of closed end investment company shares is made under a prospectus. DIAmonds is the trade name for the DIA - Dow Jones Industrial Average Exchange Traded Fund. IV The capital gain is not taxable if it is automatically reinvested in the fund $5,500 for the wife; $0 for the husband It must be adjusted for stock splits. I and II only A DIAmonds are an American Stock Exchange traded index fund based on all stocks: A. rated AA or betterB. A diversified fund is one which has: 75% or more of its assets invested in securities; a maximum of 5% of its assets invested in any one issuer; and a maximum holding of 10% of the voting securities in any one issuer. III The plan is in default and must be liquidated by the trustee I The fund has made dividend distributions to shareholdersII The securities in the portfolio have depreciated in valueIII The securities in the portfolio have paid dividends, A. I and II onlyB. III Mutual funds can be sold short; exchange traded funds cannot be sold short Write a paragraph to form a hypothesis about why India's Supreme Court put a temporary ban on the pesticide endosulfan. I ETNs are a type of investment company offeringII ETFs are a type of investment company offeringIII ETNs are a debt instrumentIV ETFs are a debt instrument. I and III In the prospectus is the following breakpoint schedule: Purchase Amount Sales Charge$0 -$10,000 8 % $10,001 - $25,000 7 %$25,001 - Over 6 %. Which of the following statements are TRUE about the Net Asset Value per share for a mutual fund? This type of ETF has shorted 20+ year Treasuries in the hopes that prices will drop and the positions can be covered (bought back) for a profit. II Money market funds typically do not impose management fees IV The representative must sign a statement that all required representations and determinations were completed The 18-year old daughter is entering college and does not have enough money in the savings account to pay for tuition. Which statements are TRUE about mutual fund Class A shares? Shareholders in a management company have the right to: I set the management feeII vote for the Board of DirectorsIII vote to change the investment objective of the fundIV vote for the investment adviser, A. I, IIIB. $46.94 In the prospectus, the breakpoint schedule is: The members of the following occur ( s ) about the Net Asset per! 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