Exam (elaborations)
Series 65 final exam questions and correct answers
- Course
- Institution
Series 65 final exam questions and correct answers
[Show more]
Content preview
Series 65 final examAn options strategy that would be most useful for an investor with a long position in a stock who is
concerned that a proposed management change will negatively impact the stock's price would be to
A)
buy a put on that stock.
B)
sell a call on that stock.
C)
buy a call on that stock.
D)
sell a put on that stock. - correct answer ✔✔a
(This investor is looking to hedge his risk of loss. The best way to hedge a long position is to buy a put
option.)
One of your new clients has only been working for 3 years but is already interested in retirement
planning. In order to be fully eligible for Social Security, the client must
A)
be at least age 62.
B)
have minimum credited earnings of at least $20,000 per year.
C)
have a minimum of 40 covered quarters of employment.
D)
have at least 40 years of employment. - correct answer ✔✔c
A feature of which of the following business entities is limited liability but no flow-through of earnings or
losses?
,A)
Corporation
B)
LLC
C)
Limited partnership
D)
Sole proprietorship - correct answer ✔✔a
Interest rates are declining. An analyst would be most likely to state that the business cycle is in which
stage?
A)
Trough
B)
Contraction
C)
Peak
D)
Expansion - correct answer ✔✔B
As part of its suitability determination, an IA firm requires that all potential nonbusiness clients complete
a family balance sheet. Items that would be included are
I. gold jewelry
II. loan secured by the family automobile
III. the amount paid thus far this year for Botox injections
IV. the balance owed to the dentist for new crowns
A)
I, II, III and IV
B)
,I and IV
C)
II and III
D)
I, II and IV - correct answer ✔✔D
The capital asset pricing model (CAPM) is an investment theory that serves as a model for
A)
pricing securities based on their unsystematic risk
B)
measuring the correlation between a security and the overall market
C)
pricing securities based on their total risk
D)
pricing securities based on their systematic risk - correct answer ✔✔D
All of the following are potential benefits of high frequency trading (HFT) except
A)
greater trading opportunities for the small investor.
B)
arbitrage opportunities increase market efficiency.
C)
lower costs for institutional purchasers.
D)
increased liquidity, especially in very active stocks. - correct answer ✔✔A
Under the Investment Advisers Act of 1940, as amended by the Marketing Rule for Investment Advisers,
advertising done by investment advisers prohibits which of these?
I. The use of testimonials
, II. Reference only to specific past recommendations
III. Untrue statements
A)
III only
B)
I only
C)
II and III
D)
I and III - correct answer ✔✔C
Which of the following investments would not be considered exchange-traded derivatives?
A)
Forwards
B)
Warrants
C)
Futures
D)
Options - correct answer ✔✔A
Who safeguards the securities held in a mutual fund's portfolio?
A)
The custodian
B)
The trustee
C)
The corporation
D)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Sakayobako30. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76877 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now