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WorksheetsS7 Finals
Total questions: 10
Worksheet time: 20mins
A registered rep suggests and then implements a strategy in a client's portfolio. This strategy involves the RR coming up with certain determinations in relation to an appropriate distribution of investments over time. Which of the following most accurately describes the strategy that has been implemented?
The RR is using only a technical analysis approach to allocation
The RR is using capital asset pricing model to determine allocation
The RR is using a form of asset allocation for the client
The RR is using a strategy purely focused on diversification for the client
In analyzing a G.O. bond, which of the following would be most important?
A feasible study
Protective covenants
Budgetary practices
Existing competitive facilities
In a leveraged buyout, the acquiring company borrows funds
using its own assets as a security for the loan
using the target company's assets as security for the loan
using unsecured loans
Using unsecured and subordinated loans
Exchange Traded Notes provide which of the following to investors?
Protection of the investors principal that was invested
Allows investors access to market sectors that would ordinarily be unsuitable
An equity position in the index
Shares which represent ownership in the issuing bank
A customer who is about to retire wants to buy a low risk product that will provide a predictable stream of income. Which of the following products is most suitable for his needs?
An immediate fixed annuity
An immediate variable annuity
A deferred fixed annuity
A variable universal life insurance policy
A
B
C
D
A client purchased 200 shares of ABC for $22,500 two years ago. Over the next few years the client sold ABC call options for a total of $1,500. All the calls expired worthless. For tax purposes, the cost basis for the 200 share of ABC is
$22,500
$21,000
$23,250
$24,000
An RR has identified four investment options for a customer, who is a senior. Which investment option would be considered the most appropriate?
U.S. Government bonds
Deferred variable annuity
U.S. savings bonds
Zero-coupon bonds offered at a deep discount
How often is interest paid on a U.S. Treasury Receipt?
It is paid when the security comes due at maturity
It is paid on an annual basis
It is paid on a semi-annual basis
It is paid on a quarterly basis or four times annually
A
B
C
D
