Investments

Question 1

An investment policy statement (IPS) does not include the ________?

Answer 1

Investment selection.

Question 2

What’s is the highest rating Morningstar offers is ________?

Answer 2

• *5** stars.
• *1** star is the lowest rating while 5 is the highest.

Question 3

A ________ will turn into a market order once a specified price is reached in a given security.

Answer 3

Stop order.

Question 4

Purchasing power risk is also known as ________.

Answer 4

Inflation risk.

Question 5

A ________ strategy includes both active and passive approaches to portfolio management.

Answer 5

• *Co**re and satellite.
• *Th**e core portion of this strategy is passively managed and is comprised of well-diversified holdings, while the satellite portion is typically actively managed.

Question 6

You achieve alpha when a security is above the ________?

Answer 6

Capital markets line.

Question 7

When would you report earning on an EE Bond?

Answer 7

When redeemed or at maturity.

Question 8

Coefficient of determinization is also called ________?

Answer 8

R squared (R²).

Question 9

What type of risk does Beta measure?

Answer 9

Systematic risk. Associated this with a well-diversified portfolio.

Question 10

If the market risk premium increases, the value of common stock will typically ________?

Answer 10

Decrease. Security prices decrease to help compensate for an increase in risk.

Question 11

Total risk is measured by ________?

Answer 11

Standard deviation.

Question 12

The measure of the skew or peak of a curve is called ________?

Answer 12

• *Kurto**sis.
• *Yo**u should know the difference between positive and negative kurtosis. Positive kurtosis has a high peak because of low levels of variation. Negative kurtosis has a lower park, caused by wide dispersion of returns. Positive kurtosis is called leptokurtic and negative kurtosis is referred to as platykurtic.

Question 13

What securities license allows an individual to sell mutual funds?

Answer 13

A series 6 license.

Question 14

The risk return tradeoff investors are willing to make is called the ________?

Answer 14

The indifference curve.

Question 15

As inflation increases, an investors required rate of return will ________?

Answer 15

Rise.

Question 16

Inefficient portfolios typically fall ________ the Capital Market Line.

Answer 16

Below.

Question 17

What is the main determinant of a portfolio total return?

Answer 17

Allocation.

Question 18

If a portfolio is well diversified, should you use a Sharpe or Treynor measurement?

Answer 18

Treynor.

Remember both Treynor and Jensen’s Alpha both use Beta as a measure of risk, which is the measurement used in a well-diversified portfolio. With that in mind, a Sharpe index would not be an appropriate measurement of risk.

Question 19

The fixed income strategy involves purchasing bonds with varying maturities and helps to reduce interest rate risks.

Answer 19

A bond ladder strategy.

Question 20

________ can be used to determine which portfolios are attainable and which are not.

Answer 20

The efficient frontier.

Question 21

When there is a cash dividend paid, what typically happens to the price of the underlying stock?

Answer 21

The price moves lower.

Question 22

A fixed income security with a higher yield to maturity would have a ________ duration.

Answer 22

Shorter (inverse).

Question 23

Where are closed-end funds traded?

Answer 23

• *O**n the secondary market.
• *Don**’t confuse this with open-end funds (mutual funds) that are traded directly with the fund company.

Question 24

The relationship between return and systematic risk is displayed on the ________?

Answer 24

• *Secu**rity Market Line (SML).
• *Underv**alued portfolio rest above the SML while overvalued portfolios rest below.

Question 25

**Wh**at **ar**e **th**e **matur**ities **o**n **mon**ey **mar**ket **fun**ds?

Answer 25

**9**0 **da**ys **o**r **les**s.

Question 26

**Wh**at **ty**pe **o**f **fix**ed **inc**ome **stra**tegy **wi**ll **mini**mize **th**e **imp**act **o**f **inte**rest **ra**te **chan**ges?

Answer 26

**A** **bo**nd **lad**der **strat**egy. **Reme**mber **th**at **bo**nd **ladd**ers **incl**ude **bon**ds **wi**th **sho**rt **an**d **lo**ng **maturi**ties.

Question 27

**Secu**rity **pri**ces **an**d **inte**rest **rat**es **typic**ally **mo**ve **\_\_\_\_\_**\_\_\_\_ **t**o **ea**ch **oth**er.

Answer 27

**Inve**rse.

Question 28

**The**se **tw**o **typ**es **o**f **perfor**mance **meas**ures **ar**e **consi**dered **t**o **b**e **rela**tive **i**n **natu**re?

Answer 28

**Sha**rpe **an**d **Trey**nor.

Question 29

**Treas**uries **Bon**ds **ar**e **no**t **subj**ect **t**o **\_\_\_\_\_**\_\_\_?

Answer 29

* *Sta**te **inc**ome **ta**x. * *Th**ey **ar**e **subj**ect **t**o **Fede**ral **Inc**ome **Ta**x.

Question 30

**GI**Cs **ar**e **simi**lar **t**o **\_\_\_\_\_**\_\_\_?

Answer 30

* *Certif**icates **o**f **depo**sit **(CD**s). * *Subj**ect **t**o **purch**asing **pow**er **ris**k.

Question 31

**Ar**e **close**d-end **fun**ds **acti**vely **o**r **passi**vely **mana**ged?

Answer 31

**Acti**vely **mana**ged **an**d **tra**ded **o**n **th**e **secon**dary **mark**et.

Question 32

**Wh**at **te**rm **descr**ibes **th**e **meas**ure **o**f **pri**ce **betw**een **tw**o **securi**ties?

Answer 32

**Covari**ance.

Question 33

**A** **fix**ed **inc**ome **secu**rity **wi**th **a** **lon**ger **matur**ity, **wou**ld **ha**ve **a** **\_\_\_\_**\_\_\_\_ **durat**ion.

Answer 33

**Long**er.

Question 34

**I**s **go**ld **bull**ion **allo**wed **i**n **a**n **IR**A?

Answer 34

**Ye**s. **B**e **care**ful, **yo**u **ma**y **b**e **ask**ed **i**f **go**ld **bull**ion **ca**n **b**e **contri**buted **t**o **a**n **IR**A. **Go**ld **bull**ion **ca**n **b**e **purch**ased **wit**hin **a**n **IR**A **bu**t **i**t **can**not **b**e **contri**buted **t**o **a**n **IR**A.

Question 35

**Regar**ding **fix**ed **inc**ome **securi**ties, **wh**at **ty**pe **o**f **stra**tegy **elimi**nates **a** **reinve**stment **ra**te **ris**k?

Answer 35

**A** **bu**y **an**d **ho**ld **strat**egy.

Question 36

**I**s **th**e **Do**w **Jon**es **Indus**trial **Aver**age **a** **val**ue **weig**hted **o**r **pri**ce **weig**hted **ind**ex?

Answer 36

**Pri**ce **weigh**ted.

Question 37

**Wh**en **selec**ting **ne**w **secur**ities **i**n **a** **divers**ified **portf**olio, **yo**u **wa**nt **t**o **ad**d **ass**ets **th**at **ha**ve **th**e **\_\_\_\_\_**\_\_\_?

Answer 37

**Low**est **correl**ation **coeffi**cient.

Question 38

**Th**e **\_\_\_\_**\_\_\_\_ **us**es **stan**dard **devia**tion **a**s **a** **meas**ure **o**f **ri**sk **whi**le **th**e **\_\_\_\_**\_\_\_\_ **us**es **Be**ta **a**s **a** **meas**ure **o**f **ris**k.

Answer 38

* *Capi**tal **Mar**ket **Li**ne * *Secu**rity **mar**ket **Li**ne

Question 39

**Stan**dard **devia**tion **i**s **a** **meas**ure **o**f **\_\_\_\_**\_\_\_\_ **ris**k?

Answer 39

**Tot**al **ris**k. **Be**ta **i**s **a** **meas**ure **o**f **mar**ket **ris**k.

Question 40

**A**n **inve**stor **wi**th **a** **\_\_\_\_**\_\_\_\_ **appr**oach **wou**ld **rebal**ance **the**ir **portf**olio **whe**re **need**ed.

Answer 40

**Tact**ical **appro**ach. **Th**is **ca**n **b**e **a** **tri**cky **on**e **t**o **remem**ber, **espec**ially **aft**er **you**’ve **be**en **test**ing **fo**r **3-**4 **hou**rs. **A** **go**od **wa**y **t**o **visua**lize **th**is **conc**ept **i**s **t**o **envi**sion **a** **ta**ck **lay**ing **ups**ide **dow**n, **an**d **somet**hing **balan**cing **o**n **th**e **poi**nty **en**d. **Sil**ly **conc**ept **bu**t **we’**re **he**re **fo**r **poin**ts.

Question 41

**Repurc**hased **sha**res **ar**e **al**so **kno**wn **a**s **\_\_\_\_\_**\_\_\_?

Answer 41

**Trea**sury **shar**es.

Question 42

**A** **fix**ed **inc**ome **secu**rity **wi**th **a** **hig**her **cou**pon **ra**te **wou**ld **ha**ve **a** **\_\_\_\_**\_\_\_\_ **durat**ion.

Answer 42

**Shor**ter **(inve**rse).

Question 43

**A** **revalu**ation **o**f **a** **curr**ency **i**s **th**e **sa**me **thi**ng **a**s **\_\_\_\_\_**\_\_\_?

Answer 43

**Appreci**ation.

Question 44

**Infla**tion **ri**sk **i**s **al**so **kno**wn **a**s **\_\_\_\_\_**\_\_\_?

Answer 44

**Purch**asing **pow**er **ris**k.

Question 45

**Wh**en **calcul**ating **ne**t **pres**ent **val**ue **(NP**V), **wh**at **wou**ld **a** **posi**tive **res**ult **indic**ate?

Answer 45

* *Th**at **th**e **inves**tor’s **requ**ired **ra**te **o**f **ret**urn **wa**s **achie**ved. * *I**f **NP**V **i**s **0**, **th**is **al**so **indic**ates **th**at **th**e **ret**urn **wa**s **achie**ved.

Question 46

**Wh**en **wou**ld **a** **comp**any **exer**cise **th**e **ca**ll **feat**ure **o**n **a**n **exis**ting **bon**d?

Answer 46

* *Wh**en **exis**ting **bon**ds **ar**e **trad**ing **a**t **a** **prem**ium. * *It**’s **impor**tant **t**o **kn**ow **th**e **relati**onship **betw**een **yie**ld **an**d **pri**ce. **Th**is **conc**ept **i**s **tes**ted **frequ**ently **o**n **th**e **exa**m. **I**n **th**is **cas**e, **a** **comp**any **wou**ld **leve**rage **th**e **ca**ll **provi**sion **beca**use **th**ey **ca**n **ret**ire **bo**nd **pay**ing **a** **hig**her **ra**te **an**d **reis**sue **ne**w **bon**ds **a**t **a** **low**er **inte**rest **rat**e. **I**f **rat**es **we**re **t**o **dro**p, **exis**ting **bon**ds **bec**ome **mo**re **attrac**tive, **th**us **lead**ing **t**o **the**se **bon**ds **trad**ing **a**t **a** **prem**ium.

Question 47

**T**o **deter**mine **ho**w **mu**ch **o**f **a**n **ass**ets **ret**urn **ca**n **b**e **attri**buted **t**o **th**e **over**all **mark**et, **wh**at **sho**uld **yo**u **ident**ify?

Answer 47

**Iden**tify **th**e **coeffi**cient **o**f **determi**nation **o**r **R²**.

Question 48

**Wh**at **wou**ld **cau**se **taxa**tion **o**n **a** **munic**ipal **bon**d?

Answer 48

**I**f **i**t **wa**s **so**ld **fo**r **a** **prof**it.

Question 49

**Wh**en **yo**u **ca**n **off**set **reinve**stment **ra**te **ri**sk **an**d **inte**rest **ra**te **ris**k, **yo**u **ha**ve **effect**ively **\_\_\_\_\_**\_\_\_.

Answer 49

**Immun**ized **a** **bo**nd **portf**olio.

Question 50

**I**f **R**² **i**s **low**er **th**an **.7**0. **whi**ch **ri**sk **meas**ure **sho**uld **yo**u **us**e?

Answer 50

* *Sha**rpe **rat**io. * *Reme**mber **th**at **a** **hig**her **R**² **indic**ates **th**at **th**e **portf**olios **retu**rns **ar**e **mo**re **clos**ely **alig**ned **wi**th **th**e **over**all **mar**ket **(divers**ified). **I**f **a** **portf**olio **i**s **no**t **we**ll **divers**ified, **yo**u **sho**uld **us**e **stan**dard **devia**tion, **whi**ch **ca**n **he**lp **meas**ure **ri**sk **i**n **a**n **undiver**sified **portf**olio. **I**f **th**e **portf**olio **i**s **we**ll **divers**ified, **yo**u **sho**uld **us**e **Bet**a.

Question 51

**Wh**en **compa**ring **bon**ds, **wou**ld **a** **bo**nd **wi**th **a** **lon**ger **dura**tion **b**e **mo**re **o**r **le**ss **vola**tile **wh**en **comp**ared **t**o **a** **bo**nd **wi**th **a** **shor**ter **durat**ion.

Answer 51

**Mo**re **volat**ile.

Question 52

**Wh**en **wou**ld **a** **sto**ck **divi**dend **b**e **tax**ed?

Answer 52

**A**t **th**e **sal**e.

Question 53

**Commi**ssion **cos**ts **t**o **acqu**ire **a** **secu**rity **wou**ld **effect**ively **\_\_\_\_**\_\_\_\_ **th**e **bas**is **o**f **th**e **secur**ity.

Answer 53

**Incre**ase.

Question 54

**Wh**at **fo**rm **o**f **th**e **effic**ient **mar**ket **hypot**hesis **supp**orts **mar**ket **anoma**lies?

Answer 54

**Non**e. **I**f **th**e **mar**ket **i**s **effic**ient; **anoma**lies **sho**uld **theoret**ically **no**t **exi**st.

Question 55

**N**o **mo**re **th**an **3**5 **non-acc**redited **inves**tors **descr**ibes **\_\_\_\_\_**\_\_\_?

Answer 55

**Regul**ation **D**.

Question 56

**Wh**at **meas**ure **sho**uld **yo**u **us**e **fo**r **a** **non-dive**rsified **portf**olio?

Answer 56

* *Stan**dard **devia**tion. * *Be**ta **i**s **us**ed **i**n **a** **well-div**ersified **portf**olio.

Question 57

**Wh**at **meas**ure **o**f **ri**sk **i**s **consi**dered **t**o **b**e **a**n **abso**lute **perfor**mance **meas**ure?

Answer 57

**Jens**en’s **Alp**ha. **Trey**nor **an**d **Sha**rpe **ar**e **rela**tive **measu**res, **mean**ing **th**ey **ne**ed **t**o **b**e **comp**ared **t**o **oth**er **Sha**rpe **&** **Trey**nor **figu**res **fo**r **analy**sis. **Jens**en’s **Alp**ha **alo**ne **ca**n **indi**cate **i**f **a** **manag**er’s **perfor**mance **i**s **approp**riate **fo**r **th**e **amo**unt **o**f **ri**sk **tak**en.

Question 58

**Wh**at **meas**ures **a** **secur**ities **pri**ce **move**ment **rela**tive **t**o **th**e **mark**et?

Answer 58

**Bet**a.

Question 59

**Th**is **te**rm **descr**ibes **wh**at **lev**el **o**f **ri**sk **a**n **inve**stor **wi**ll **acc**ept **fo**r **a** **giv**en **retu**rn.

Answer 59

**Indiff**erence **cur**ve.

Question 60

**Wh**en **calcul**ating **intri**nsic **val**ue, **wh**en **wou**ld **yo**u **exp**ect **t**o **se**e **a** **nega**tive **numb**er?

Answer 60

**Nev**er. **A**n **intri**nsic **val**ue **o**f **a** **sto**ck **opt**ion **can**not **b**e **negat**ive.

Question 61

**Wh**at **ty**pe **o**f **munic**ipal **bo**nd **ca**n **b**e **iss**ues **wi**th **a** **restri**ctive **reve**nue **bas**e?

Answer 61

**Limi**ted **gene**ral **oblig**ation **bon**ds.

Question 62

**Sha**rpe **an**d **Trey**nor **ar**e **consi**dered **t**o **b**e **\_\_\_\_**\_\_\_\_ **meas**ures **o**f **ris**k.

Answer 62

**Relat**ive.

Question 63

**\_\_\_\_**\_\_\_\_ **ar**e **typic**ally **self-liq**uidating **an**d **proh**ibit **th**e **addi**tion **o**f **ne**w **secur**ities **aft**er **th**e **crea**tion **o**f **th**e **portf**olio.

Answer 63

**Un**it **inves**tment **Tru**sts **(UIT**s).

Question 64

**Wh**en **usi**ng **th**e **Capi**tal **Ass**et **Pric**ing **Mod**el **(CAP**M), **wh**at **sho**uld **yo**u **lo**ok **fo**r **i**n **th**e **struc**ture **o**f **th**e **quest**ion?

Answer 64

**Whet**her **yo**u **ar**e **prov**ided **th**e **mar**ket **ri**sk **prem**ium **o**r **i**f **i**t **i**s **provi**ded. **Yo**u **ma**y **b**e **giv**en **al**l **o**f **th**e **neces**sary **varia**bles **indepen**dently **wh**en **ask**ed **t**o **calcu**late **th**e **CAP**M. **Ma**ke **su**re **t**o **under**stand **i**f **th**e **ques**tion **ident**ifies **th**e **mar**ket **ri**sk **prem**ium **o**f **i**f **yo**u **ar**e **requ**ired **t**o **calcu**late **i**t **indepen**dently. CAPM = r_i = r_f= (r_m-r_f)B_i | Market risk premium alone = (r_m-r_f)

Question 65

**Ind**ex **fun**ds **tra**de **a**t **\_\_\_\_\_**\_\_\_?

Answer 65

**Ne**t **ass**et **val**ue **(NA**V).

Question 66

**Corpor**ations **se**ll **wh**at **ty**pe **o**f **unse**cure **deb**t?

Answer 66

**Comme**rcial **pap**er. **Typic**ally **us**ed **t**o **fina**nce **sho**rt **te**rm **obliga**tions **su**ch **a**s **payr**oll.

Question 67

**Arbit**rage **pric**ing **the**ory **i**s **consi**dered **t**o **b**e **a** **\_\_\_\_**\_\_\_\_ **mod**el **whi**le **CA**PM **i**s **a** **\_\_\_\_**\_\_\_\_ **mod**el.

Answer 67

* *Multi-**factor **mod**el. * *Sin**gle **fact**or.

Question 68

**Th**e **\_\_\_\_**\_\_\_\_ **th**e **coup**on, **th**e **\_\_\_\_**\_\_\_\_ **th**e **durat**ion.

Answer 68

* *Low**er * *Hig**her **The**se **ite**ms **mo**ve **inve**rse **t**o **ea**ch **oth**er.

Question 69

**Perfor**mance **abo**ve **th**e **secu**rity **mar**ket **li**ne **indic**ates **th**e **achiev**ement **o**f **\_\_\_\_\_**\_\_\_.

Answer 69

**Posi**tive **Alp**ha.

Question 70

**A**t **th**e **poi**nt **o**f **\_\_\_\_\_**\_\_\_, **a**n **indiv**idual **ha**s **obta**ined **th**e **opti**mal **portf**olio.

Answer 70

**Tange**ncy.

Question 71

**Dura**tion **i**s **typic**ally **\_\_\_\_**\_\_\_\_ **th**an **matur**ity.

Answer 71

* *Low**er. * *Help**ful **wh**en **elimin**ating **incor**rect **answ**ers **i**n **mult**iple **cho**ice **quest**ions. * *I**f **you**’re **ask**ed **t**o **calcu**late **th**e **dura**tion **o**n **a** **1**0 **ye**ar **bon**d, **yo**u **cou**ld **effect**ively **elimi**nate **an**y **ans**wer **ov**er **10**.

Question 72

**Equ**ity **REI**Ts **all**ow **fo**r **th**e **partici**pation **i**n **appre**ciate **o**f **\_\_\_\_\_**\_\_\_?

Answer 72

**Th**e **under**lying **proper**ties.

Question 73

**Th**e **maxi**mum **matu**rity **o**f **a** **Trea**sury **No**te **i**s **\_\_\_\_\_**\_\_\_.

Answer 73

**1**0 **yea**rs.

Question 74

**Wh**en **compa**ring **inves**tment **opportu**nities, **whi**ch **i**s **a** **bet**ter **meas**ure **t**o **consi**der? **Ne**t **pres**ent **val**ue **(NP**V) **o**r **th**e **inte**rnal **ra**te **o**f **ret**urn **(IR**R)?

Answer 74

**NP**V. **Th**is **i**s **a** **dir**ect **meas**ure **o**f **th**e **dol**lar **bene**fit **i**n **pres**ent **doll**ars.

Question 75

**CD**s **wi**th **matur**ities **o**f **le**ss **th**an **1** **ye**ar **ca**n **b**e **fact**ored **i**n **\_\_\_\_\_**\_\_\_?

Answer 75

**Emerg**ency **fu**nd **calcula**tions.

Question 76

**ET**Fs **tra**de **a**t **a** **\_\_\_\_\_**\_\_\_.

Answer 76

* *Disco**unt. * *Remin**der: **ind**ex **fun**ds **tra**de **a**t **NA**V.

Question 77

**Whi**ch **ind**ex **us**ed **a** **geome**tric **retu**rn?

Answer 77

**Th**e **Val**ue **Lin**e.

Question 78

**Ho**w **d**o **yo**u **immu**nize **a** **bo**nd **portf**olio?

Answer 78

**Mat**ch **th**e **AVER**AGE **weig**hted **dura**tion **wi**th **th**e **matu**rity **ti**me **hori**zon.

Question 79

**Wh**en **the**re **i**s **a**n **incr**ease **i**n **th**e **sup**ply **o**f **mon**ey, **a**n **inves**tor’s **requ**ired **ra**te **o**f **ret**urn **wi**ll **\_\_\_\_\_**\_\_\_?

Answer 79

* *Decre**ase. * *Th**e **mon**ey **sup**ply **incre**ases **wh**en **th**e **Fede**ral **Rese**rve **purch**ases **treas**uries **and**/or **low**ers **th**e **disc**ount **rat**e.

Question 80

**Th**is **meas**ures **th**e **stre**ngth **o**f **th**e **relati**onship **o**f **tw**o **varia**bles.

Answer 80

**Correl**ation **coeffi**cient.

Question 81

**Wh**at **secur**ities **lice**nse **ca**n **se**ll **a** **UI**T?

Answer 81

**Ser**ies **6**.

Question 82

**Wh**en **d**o **E**E **Bon**ds **pa**y **inter**est?

Answer 82

**A**t **matu**rity **o**r **wh**en **redee**med.

Question 83

**Wou**ld **yo**u **us**e **th**e **Sha**rpe **o**r **th**e **Trey**nor **rat**io **wh**en **measu**ring **ri**sk **i**n **a** **divers**ified **portf**olio?

Answer 83

* *Trey**nor. * *Trey**nor **lever**ages **Be**ta **i**n **it**s **calcul**ation. **Be**ta **i**s **us**ed **t**o **meas**ure **volat**ility **i**n **a** **divers**ified **portf**olio.

Question 84

**Ho**w **ma**ny **compo**nents **i**n **th**e **Do**w **Jon**es **Indus**trial **aver**age?

Answer 84

**3**0 **compa**nies.

Question 85

**Diversif**ication **bene**fits **beg**in **wh**en **correl**ation **i**s **\_\_\_\_\_**\_\_\_?

Answer 85

**Le**ss **th**an **1**.

Question 86

**Wh**at **i**s **a**n **advis**or’s **ro**le **i**n **a** **perfe**ctly **effic**ient **portf**olio?

Answer 86

**Rebal**ance **a**s **neces**sary.

Question 87

**Wh**at **i**s **a** **ca**ll **pena**lty?

Answer 87

**Th**e **prem**ium **th**at **a** **comp**any **wi**ll **pa**y **t**o **ret**ire **exis**ting **bon**ds.

Question 88

**Ze**ro **cou**pon **bon**ds **ar**e **subj**ect **t**o **\_\_\_\_**\_\_\_\_ **ris**k?

Answer 88

* *Purch**asing **pow**er **ris**k. * *Zer**os **d**o **no**t **pa**y **inte**rest **s**o **th**ey **ar**e **no**t **subj**ect **t**o **reinve**stment **ra**te **ris**ks.

Question 89

**T**o **calcu**late **th**e **pri**ce **pe**r **sha**re **wh**en **usi**ng **dol**lar **coa**st **avera**ging, **yo**u **sho**uld **div**ide **\_\_\_\_**\_\_\_\_ **b**y **\_\_\_\_\_**\_\_\_?

Answer 89

**Th**e **tot**al **num**ber **o**f **sha**res **purch**ased **b**y **tot**al **dol**lar **amo**unt **inves**ted.

Question 90

**T**o **rece**ive **quali**fied **divid**ends, **a**n **indiv**idual **mu**ch **ha**ve **posse**ssion **o**f **th**e **secu**rity **fo**r **\_\_\_\_\_**\_\_\_?

Answer 90

**o**u **ne**ed **t**o **purc**hase **th**e **sto**ck **bef**ore **i**t **go**es **ex-div**idend **an**d **th**en **ho**ld **i**t **a**t **lea**st **6**1 **da**ys **fo**r **quali**fied **treat**ment.