Green light 1 Exam Practice Questions and Answers | 100% Pass
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Course
Green light
Institution
Green Light
Green light 1 Exam Practice Questions
and Answers | 100% Pass
An investment adviser representative advises a client in a low income tax bracket to
purchase municipal securities. Which of the following statements best describes this
action?
a. The advice by the representative is unethical
b. A...
According to modern portfolio theory (MPT), the expected return of an investment is the:
a. Income, such as bond interest, that has been guaranteed by the issuer
b. Income, including dividends and/or interest, that is more than 50% likely to be paid by
the issuer in the next year
c. Possible returns on the investment weighted by the likelihood that return will occur
d. Standard deviation of gains and losses over the life of the investment - Answer✔️✔️-c.
Possible returns on the investment weighted by the likelihood that return will occur .
An investment adviser representative is preparing a financial plan for a client. As part of
this process, he is making a personal balance sheet and income statement. The income
statement should include all of the following items, EXCEPT:
a. Commissions and bonuses
b. Depreciation on the primary residence
c. Interest income
d. Mutual fund dividends - Answer✔️✔️-b. Depreciation on the primary residence
Any appreciation or depreciation in real estate that the client owns would be included on
the client's balance sheet, not his personal income statement. Choices (a), (c), and (d)
are all sources of income that should be included on the client's income statement.
According to the Uniform Securities Act, which of the following entities or persons must
register as a broker-dealer in State A?
a. The trust department of a bank located in State A
b. A broker-dealer located in State B, that conducts transactions for customers
vacationing in State A
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