Online Access Free Series6 Exam Questions

By investing in a diversified portfolio, an investor will:

• A.lower his risk and increase his expected return.
• B.lower his risk without affecting his expected return.
• C.eliminate all the market risk associated with his investment portfolio.
• D.lower both his risk and his expected return.

A retirement plan under which the benefit to be paid upon retirement is specified when an employee is
signed up for the plan is known as a:

• A.defined benefit plan.
• B.defined contribution plan.
• C.SIMPLE-IRA.
• D.401(k) plan.

Which of the following investor characteristics is inconsistent with an aggressive investment strategy?
I. short investment horizon
II. high risk tolerance
III. young

• A.I, II, and III
• B.III only
• C.I and II
• D.I only

Mr. Big of HiGrow Corporation needs more money to support the exceptional growth rate that his firm is
enjoying. He meets with BigFee Investment Banker, who agrees to handle the IPO for HiGrow.
Subsequently, InTheLoop Brokerage is tapped to be part of the selling group that will handle the sale of
the new stock to the public. In this example, the issuer is:

• A.Mr. Big
• B.InTheLoop Brokerage
• C.HiGrow Corporation
• D.BigFee Investment Banker

Which of the following represents a secondary market transaction?

• A.A home buyer obtains a mortgage through his savings and loan.
• B.An investor buys Treasury bills in the regular Monday auction.
• C.An investor sells her shares of Sunvalley Solar, Inc. (SSOL), which sells on the OTC Bulletin Board for
  $ 0.059 a share.
• D.An investor buys 300 shares of Electromed (ELMD) at its IPO offer price of $4.00 a share.