Part 4

Question 1

JTWROS

Answer 1

equal ownerships, pass to survior

Question 2

Tennis in common

Answer 2

can be unequal, passes to estate

Question 3

Tenancy by the entirety

Answer 3

limited to spouses, permission needed for sale or gift, primarily for real estate

Question 4

unlimited number of members

Answer 4

LLC

Question 5

taxed like a partnership

Answer 5

LLC

Question 6

easy to dissolve

Answer 6

LLC

Question 7

S Corp

Answer 7

Limited liability

Question 8

100 shareholder

Answer 8

S Corp

Question 9

Risk limited to investment

Answer 9

C corp

Question 10

corp is a taxable entity

Answer 10

C corp

Question 11

raising large amounts of capital

Answer 11

c corp

Question 12

Transfer on death

Answer 12

avoids probate on first to die

Question 13

Strategic asset allocation

Answer 13

long term

Question 14

tactical asset allocation

Answer 14

short term

Question 15

buys when others selling

Answer 15

contrarian

Question 16

runs hundreds of thousands of trails based on varying factors: rate of return, inflation rates and interest rates

Answer 16

Monte Carlo Simulation

Question 17

borrow or lend money at the risk free rate of return

Answer 17

Capital market theory components

Question 18

expected return and variability

Answer 18

capital market theory components

Question 19

diversify by using securities with a low or negative correlation

Answer 19

Modern Portfolio theory

Question 20

used to determine the required rate of return & systematic risk

Answer 20

Capital Asset Pricing Model

Question 21

Captial asset pricing Model

Answer 21

Risk Free rate + B(market Return - RF)

Question 22

All investor have equal access to the same market information, Cant beat the market

Answer 22

Efficient market hypo

Question 23

Weak form

Answer 23

information everyone knows: technical analysis

Question 24

Semi-strong form

Answer 24

the information available with some effort, company financials, fundamental analysis

Question 25

Strong form

Answer 25

the information available to insiders, no benefit

Question 26

Stock position plus option position

Answer 26

hedging

Question 27

using leverage

Answer 27

margin

Question 28

High-Frequency Trading

Answer 28

Proprietary trading using high-speed systems to monitor and submit large numbers of orders to the market

Question 29

Dark pools of liquidity

Answer 29

institutional traders in large blocks of trades without impact to public quotes or prices

Question 30

Measures risk adjusted return

Answer 30

sharp ratio

Question 31

Standard and Poors 400

Answer 31

400 Mid-cap stocks

Question 32

Russell 2000 indec

Answer 32

2000 small cap stocks

Question 33

EAFE

Answer 33

europe, australasia, and far east

Question 34

Wilshire 5000

Answer 34

broadest | 3500

Question 35

529

Answer 35

No age limit for contribution or withdrawls no earning limitations 10% penalty may roll over to anther state plan once per 12m onths states set max limits assets under the control of account owner

Question 36

UGMA/UTMA

Answer 36

one child per owner irrevocable no limit to gift size

Question 37

coverdell ESA

Answer 37

after tax 2000 max a year contributions may be made untill 18th birthday earning limits use before 30 otherwise taxed