donor II and III. ETFs have credit riskC. Rather, they are negotiable securities. Total Expenses - Total Net AssetsD. B A 200% Leveraged Dow Jones Industrial Average Index ETF would be expected to move: I up 50% in price when the DJIA moves up 100%II up 100% in price when the DJIA moves up 50%III down 50% in price when the DJIA moves down 100%IV down 100% in price when the DJIA moves down 50%, A leveraged ETF uses borrowing (margin) and options to magnify price movement as compared to the reference index. closed end management company C. I and IV A bond ETF profits when prices rise. The plan requires that a constant dollar amount be maintained in equity securities, with any excess invested in debt. The US Department of Energy has assessed that the Covid-19 pandemic most likely came from a laboratory leak in China, according to a newly updated classified intelligence report. B They include the entire fixed income market. Their dividends are tax-deductible expenses to the issuing firms. I and IVC. Multiple select question. b. Over the past 5 years, the fund has appreciated to $46,000. I and II only dividend and capital gains distributions are taxable each year for both there is no commission cost when buying an exchange traded fund share whereas there is a commission cost when buying a mutual fund shareC. A. It has been calculated since 1896. D. $1,025 plus a commission, D. $1,025 plus a commission The normal ex-date of 2 business days prior to record date does not apply because there is no trading of mutual fund shares (the ex-date for mutual funds is typically the day after the payable date). Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and (c) the net realizable value of accounts receivable. The Letter Of Intent (LOI) provision operates separately from Rights of Accumulation and takes precedence over Rights of Accumulation. ), Which statement is TRUE regarding the ex date for a mutual fund? Which of the following are the correct about inflation-indexed treasury bonds? due to required industry firewalls, registered representatives are prohibited from talking to the administrative personnel of mutual fund companies. I Money market funds are typically sold without a sales charge $1,802 plus a commissionC. Furthermore, the longer maturity and lower coupon issues rise the fastest as market interest rates fall. A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. D. The ex-date is the day on which the Net Asset Value per share increases, A. hedge fund. III and IVC. He doesnt have time to redo the analysis. C One of the hedge fund customers tells the representative: I would like you to talk to the administrative people at the Jeffersonian Fund Group and find out the redemption dollar amount that they use to identify funds that excessively trade. You comply with the customers request and the administrative personnel inform you that the limit is $1,000,000. The anticipated tuition, starting 8 years from now, is $50,000 per year ($200,000 total tuition). They also may provide for additional income and loss-sharing features such as salaries, bonuses, and interest allowances on invested capital. I At least 40% of the Board of Directors must be non-interested personsII At least 60% of the Board of Directors must be non-interestedIII To establish a fund, a minimum of $10,000 of Total Net Assets is requiredIV To establish a fund, a minimum of $100,000 of Total Net Assets is required. Putting your money in a savings account is best if you'll need to withdraw the money in the near future. A. Industry performance D Which of the following statements about money market mutual funds is true? The customer deposits $15,000 into the fund over the next 13 months. C If the price of the security is fluctuating, the average purchase cost per share will be lower for the investor than the simple mathematical average price of the shares over the same period. 0 0 Similar questions The customer does not get any extra discount by going directly to the wholesaler. On that date, the price of the shares is reduced for any distributions. D The customer pays the offering price of $9.59 per share x 200 shares = $1,918.00. And the fees charged are more similar to hedge funds than a traditional closed-end fund as well - with annual ongoing fees averaging 3%, and another average 2% fee when shares are redeemed (and this ignores the up-front sales charge that is imposed when the shares are purchased!). The essential difference between an open end fund and closed end fund is that a(n): A. open-end fund is managed; while a closed-end fund is not managedB. However, since these are negotiable securities, they do have market risk. A $35,000 investment will buy $35,000 / $10.075 = 3,474 shares (rounded). You can argue this one either way, but we go with the fund of hedge funds. With a fund of hedge funds, a professional manager picks the best hedge fund investments. Which statement is TRUE regarding money market funds? True false question. When comparing an ETN to an ETF, which statements are TRUE? Based on past data, an average of 111 in 505050 policyholders will file a $5000\$ 5000$5000 claim, an average of 111 in 100100100 policyholders will file a $10,000\$ 10,000$10,000 claim, and an average of 111 in 200200200 policyholders will file a $30,000\$ 30,000$30,000 claim. True Front end sales chargeB. participating unit investment trust, Which statements are TRUE regarding Individual Retirement Accounts? Shorting an ETF is the same thing as shorting any stock. Then the shares are listed on an exchange and trade like any other stock. However, the majority of hedge funds still charge a performance fee based on profits, not a performance fee based on exceeding a benchmark index. D. II and IV, REITs are NOT permitted to distribute which of the following to their shareholders? Access is limited to institutions and high net worth or high income individuals. An inverse ETF is one that uses short and options to move opposite to the market. In order to be regulated under Subchapter M of the IRS Code, at least how much of the Net Investment Income must be distributed to the mutual fund shareholders? Members of an investment clubC. Individuals can invest in the money market by buying money market funds, short-term certificates of deposit (CDs), municipal notes, or U.S. Treasury bills. I The ability of the customer to make periodic payments into the plan A fund that distributes at least 90% of Net Investment Income to shareholders is regulated under Subchapter M of the Internal Revenue Code and pays no tax on the distributed amount. Which statements are TRUE about mutual fund Class A shares? dividend income from investments, d (To qualify as a regulated investment company, 75% of REIT income must be real estate related. A. Acme $9.90 10.25 +.10 There is no credit risk here. The right, rather than the obligation, to buy an underlying asset is provided by ______. In the study, the economist learned that 112,236 tax filers left the state of New York. III and IV onlyC. dividends at Net Asset Value and capital gains at the Public Offering PriceD. The portfolio of investments is managed - this is a closed-end management company. $7,500, If the actual interest rate earned in the separate account underlying a variable annuity contract is higher than the "AIR" the annuity payment: The customer is purchasing enough of the fund to qualify for a 6.50% sales charge. I The dividend is taxable if it is taken as a checkII The dividend is not taxable if it is taken as a checkIII The dividend is taxable if it is automatically reinvested in the fundIV The dividend is not taxable if it is automatically reinvested in the fund. Rights of AccumulationC. Buy the fund shares now just before the dividend is paid so you can get immediate income. ready marketability of sharesC. Which of the following terms are synonymous? prohibited. You comply with the customer's request and the administrative personnel inform you that the limit is $1,000,000. A. a satire of the last few hours of Ivan Ilych's life. 5- Risk, Return and the Historical Record, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Carl S Warren, James M Reeve, Jonathan E. Duchac, Trends Chpt 22 Quality Improvement and Patien. The representative was required to tell the customer about the family of funds featureC. I, II, III, IV. II and III onlyC. Which statements are true about bid-ask spreads? D. II and IV, C. II and III higher average price per shareC. Mutual funds cannot be sold short. The Ask Price is Net Asset Value plus the maximum sales charge imposed by that fund. I, II, III only If a fund distributes a dividend to shareholders, the Fund shares are reduced by the value of the distribution on the ex date. higher average return on investment. C $10,450C. What is the Net Asset Value per share of a mutual fund? $46.94 Which statement is TRUE regarding this situation? Thus, they are similar to closed-end investment companies under the Investment Company Act of 1940, except that investments are made in real estate and mortgages, instead of in securities. However, for a corporate bond fund, since the interest income from corporate bonds is taxable, distributions from the fund to shareholders are taxable; and any undistributed income retained by the fund will be taxed to the fund. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares The ex-date is the day on which the Net Asset Value per share increases. One of the hedge fund customers tells the representative: I would like you to talk to the administrative people at the Jeffersonian Fund Group. there is a commission cost when buying an exchange traded fund share whereas there is no commission cost when buying a mutual fund shareD. All of the following statements are true about Health Savings Accounts EXCEPT: A. HSAs are only appropriate for those individuals covered by high-deductible health insurance plans, Which of the following statements are TRUE regarding mutual funds and variable annuities that are in the accumulation phase? Browse over 1 million classes created by top students, professors, publishers, and experts. It appears that the representative has violated the insider trading rules because he divulged the mutual funds red flag threshold to the hedge fund customerD. All of the following statements are true EXCEPT the: A. customers yield will decreaseB. Mutual funds are bought at the Ask price that includes the sales charge. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. Which statement is TRUE? When comparing an ETN to an ETF, which statement is FALSE? He or she should elect which type of withdrawal plan? Dollar cost averaging does not work if the price of the stock remains fixed, nor does it protect against loss in a falling market. A Mutual funds that have an automatic reinvestment provision will typically reinvest: A. only dividends at Net Asset ValueB. Since the customer has deposited $44,000 of the $50,000 required by the LOI already, the remaining $6,000 must be deposited to retain the reduced sales charge. It must be adjusted for stock splits. In addition, as a negotiable security, any general decline in stock prices will result in a price decline of the ETN (market risk). Fund shares now just before the dividend is paid so you can get immediate income by that fund $ total. Request and the administrative personnel inform you that the limit is $.! Created by top students, professors, publishers, and experts prices rise now, is $ 50,000 year... 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