Final Exam 1

Question 1

Under the USA, the statute of limitations for criminal violations is:

Answer 1

5 years

Question 2

Which types of investments have historically shown a great deal of exposure to regulatory risk?

Answer 2

Limited partnerships

Question 3

If a portfolio manager is rebalancing a clients assets on a quarterly basis, this would be considered:

Answer 3

A strategic asset allocation strategy

Question 4

Buy and hold and systematic rebalancing are examples of passive approaches to asset allocation, and are based on the theory known as:

Answer 4

Efficient Market Hypothesis

Question 5

Which factor will cause variable annuity payments to change from one client to another?

Answer 5

Profession

Question 6

A whole life insurance policy may be referred to as:

Answer 6

Permanent life, ordinary life, straight life. NOT TERM LIFE.

Question 7

Which are considered exempt reporting advisers?

Answer 7

Venture capital advisers and private fund advisers with AUM less than $150 million.

Question 8

When interest rates are fluctuating, what bonds are safer?

Answer 8

Short term bonds