Final Exam 3 Flashcards

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1
Q

What is a measure of non systematic risk?

A

Alpha

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2
Q

An adviser could recommend the purchase of a bond to a client if it’s:

A

Present value is more than its current market value

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3
Q

The USA authorizes the administrator to waive the surety bond requirement for a BD if the firm:

A

Maintains a sufficient level of net capital

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4
Q

According to the USA, if an IA wants to charge a fee based on the average value of a clients portfolio, the fee:

A

Is permitted unless prohibited by the administrator

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5
Q

According to the IA Act of 1940, an IARs personal securities transactions involving which security are subject to the reporting requirement?

A

Corporate stocks and bonds

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6
Q

Are section 457 plans required to follow ERISA guidelines?

A

No, because they’re non-qualified plans.

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7
Q

When is the IRR used?

A

When determining the rates that makes the NPV of an investment zero

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8
Q

Which investment company shares are transacted at the current bid or asking price on an SEC-registered securities market?

A

A closed end management company

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9
Q

When is a BD required to deliver a prospectus?

A

By settlement date

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