5. Which of the following statements is NOT correct? In Australian law and regulation, __________________________. A. the sale of a security for which no borrowing arrangements were made may be a naked short sale. B. the sale of a security that has been borrowed before the sell order but has not been delivered before the sell order is a covered short sale. C. the sale of a security for which the borrowing arrangements were made after the sell order but are delivered on time for the settlement date is a covered short sale. D. the sale of a security for which the borrowing arrangements are made after the sell order is a naked short sale. E. the sale of a security for which borrowing arrangements were made before the sell order and the delivery took place also before the sell order is an ordinary sale. 9. Which of the following is NOT a feature of price share index traditional managed funds? A. They do not require investment advisers to actively manage the fund. B. They charge lower fees compared to other types of managed funds. C. They do not have any liabilities on their balance sheet. D. They hold assets in their portfolio in proportion that reflects the composition of the index. E. Investors bring the shares that are part of the index to the fund in order to get units. 11. A speculative short seller with a lending agreement would record a gain if __________________. A. the security borrowed was more expensive than the security sold. B. the security borrower bought back the security at a lower price. C. the price of the security went down between the purchase and the resale of the security. D. the price of the security remained unchanged throughout the life of the lending agreement. E. the security lender recalled the security before the price went down. 13. Prior purchase agreements represent a higher risk to the financial system than covered short sales because ___________________. A. prior purchase agreements involve payment of a price whereas securities' borrowing agreements do not B. prior purchase agreements can fail to deliver the security whereas covered short sales never fail to deliver the security C. prior purchase agreements have not arranged to 'secure' a security to be available for the delivery to the buyer whereas covered short sales have D. prior purchase agreements are illegal whereas covered short sales are legal E. None of the above is correct. The prior purchase agreement and the covered short sale represent the same risk to the financial system as they both have arranged to 'secure' a security that will be available for the delivery to the buyer. 14. An investor who gives a sell order to its managed fund at 3pm on Wednesday 5/11 will receive a share of the portfolio's NAV measured on A. Wednesday 5/11 3pm B. Thursday 6/11 9am C. Tuesday 4/11 4pm D. Thursday 6/11 4pm E. Wednesday 5/11 4pm