Final Exam 5

Question 1

An investor is evaluating whether she should add a municipal or corporate bond to her portfolio. The bonds have the same maturity, the same coupon payment, and are trading at the same price. Which bond will add greater value to the investors portfolio?

Answer 1

The municipal bond

Question 2

If TopJob advisers has limited discretionary authority over client funds, it is required to:

Answer 2

Prepare a balance sheet and file it with the administrator

Question 3

The objective of using dollar cost averaging is that the:

Answer 3

Average price of the securities purchased will be more than the average cost securities over a long period

Question 4

An IAR who holds full discretionary authority over a customers account may:

Answer 4

Buy or sell securities in the account without consulting the customer & withdraw money from the account

Question 5

According to the USA, when is an IAR considered to have custody of customers funds?

Answer 5

An IAR has been hired by a customer to act as the trustee for the customers account.

Question 6

According to NASAA, an IA is required to maintain a record of the names and addresses of any person to whom it has sent any notice, circular, advertisement, offering, report, or publication if the number of persons is:

Answer 6

10 or fewer