7.All of the following statements about the payment of brokerage commissions (soft dollars) are true EXCEPT:

a.brokerage commissions should be directed in the best interests of the client.

b.brokerage commissions may be directed to pay for the investment manager's operating expenses.

c.brokerage commissions may be directed to pay for securities research used in managing the client's portfolio.

d.brokerage commissions paid should be commensurate with the value of the brokerage and research services received.

8.Kite has been hired by Watson Industries, Inc. to manage its pension fund. Kites fiduciary duty is owed to:

a.The participants and beneficiaries of Watsons pension plan.

b.The management of Watson.

c.Each of the other answer choices equally.

d.The shareholders of Watson.