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NEW QUESTION: 1
Your client has recently heard about "principal-protected funds" and has asked your ad vice. You should tell her that:
I. the majority of principal-protected funds guarantee the investor's initial investment, less any front-end load, even if the stock market falls.
II. it would not be a good investment if she thinks she will need the money within the next five to ten years.
III. it will beat the returns she could earn on an S&P 500 Index fund in most years.
IV. if she sells her shares at any time other than the maturity date specified, she could lose money if the price per share has fallen.
A. I and III only
B. I only
C. I, II, and IV only
D. I and II only
Answer: C
Explanation:
Explanation/Reference:
Explanation: Only Statements I, II and IV are true. You can legitimately tell your client that the majority of principal-protected funds guarantee the investor's initial investment, less any front -end load, even if the stock market falls (i.e. Selection I), but that there is a lock-up period involved. Therefore, it would not be a good investment if she thinks she will need the money within the next five to ten years (Selection II) because the principal guarantee will likely be voided, and she might be subject to a penalty for early withdrawal. You should also warn her that if she sells her shares at any time other than the maturity date specified, she could lose money if the price per share has fallen (Selection IV) since the guarantee is only valid on the maturity date of the fund in most instances. You should not tell her that the returns on a principal-protected fund will beat the returns she could earn on an S&P 500 Index fund in most years (Selection III). Although this may happen in a bear market year, it will definitely not be true during bull markets.
NEW QUESTION: 2
A. Option B
B. Option A
C. Option C
D. Option D
E. Option E
Answer: A,D
Explanation:
References: https://technet.microsoft.com/en-us/library/cc179121.aspx
NEW QUESTION: 3
Which of the following statements regarding BGP is false?
A. BGP provides abundant route filtering and routing policies
B. BGP is an exterior routing protocol and is used to transmit routing information between ASs
C. BGP is a link-state routing protocol
D. BGP supports CIDR
Answer: C