Test Geek Final Exam Flashcards
What is the measure of a portfolio’s volatility?
Standard deviation
When a true average return is shown what is it?
The arithmic mean
If rules are changed by an agency this constitutes what kind of change?
Regulatory change
If a law is changed by a legislative body it would constitute what kind of risk?
Legislative risk
A customer has inquired about a covered call. Which option would you recommend?
Sell a call
An 8K is filed with the public traded companies to disclose what?
Reportable information which is usually material non-public information that may materially affect shareholders
Loans taken from an insurance policy reduces what?
The death benefit unless paid back
What do s Corp and general partnerships have in common?
They both have pass-through profits and taxes to its owners the business entities not taxed
The internal rate of return calculation dictates that the interest earned in a portfolio is reinvested at the what?
Required return
A diversified portfolio would hold tangible assets to address which risk?
Inflation risk
Under the uniform securities act when an iar acting in the capacity of trustee of a family trust executes a transaction on behalf of the trust is what?
A violation of the trustees fiduciary responsibility
Examples of exempt securities are….
US government, state and municipal governments, foreign national governments, Canadian Federal and municipal governments, insurance companies, Banks and trusts, credit unions and savings and loans, common carriers like railroads trucking and airlines who are subject to interstate commerce commission (the term “consolidated” is a keyword), religious and charitable organizations, public utility securities, securities issued by a cooperative
Federally covered advisors must make a notice filing when?
With the state if they have a place of business in the state or have six or more clients in that state in a 12-month period, regardless of place of business
A beneficiary passes away and their heirs receive the assets held in trust. They are the?
Remainderman
One of your clients dies. Who can you take instructions from?
Administrator of intestacy.
A client who has died intestate (meaning without a will) is appointed an administrator by the state
