Question 203.13 pts

Which of the following is not a trait of a defined contribution retirement plan?

Group of answer choices

employers may match none, part or all of contributions

amount of monthly income depends on average salary and length of service

a lump sum is paid at retirement

the employee has the investment risk of funding the retirement benefit

Flag question: Question 21

Question 213.13 pts

Which of the following is not true about retirement plans?

Group of answer choices

they are governed by the Employee Retirement Income Security Act

once the terms of a retirement plan are established, the plan should not be changed

according to the prudent man rule, investments must be suitable

retirement assets are protected if a sponsor goes bankrupt

there is a government fund that partially protects benefits if a plan cannot meet its obligations

Flag question: Question 22

Question 223.13 pts

What % of the return of a portfolio is due to asset allocation?

Group of answer choices

15% - 25%

25% - 45%

45% - 65%

65% - 85%

85% - 95%

Flag question: Question 23

Question 233.13 pts

Which of the following is true about assessing the risk of putting a security into a portfolio?

Group of answer choices

assess the risk by looking at how the security fits into the overall portfolio

assess the risk by looking at the valuation of the security

assess the risk by determining a required rate of return for the security

assess the risk by calculating liquidity and leverage ratios for the security

assess the risk by evaluating the nature of the business of the issuer of the security

Flag question: Question 24

Question 243.13 pts

As you pick a benchmark to judge the performance of a portfolio, what should you look for?

Group of answer choices

make sure the goals of the portfolio and the goals of the index are the same

make sure the asset allocation and the types of securities are the same

make sure the benchmark does not consistently out-perform the portfolio

make sure the index has low fees and commission

Flag question: Question 25

Question 253.13 pts

Which of the following is true about managing a portfolio?

Group of answer choices

it is a written process

it is a continuous process

it is a legal process

it is a scientific process

Flag question: Question 26

Question 263.13 pts

You have just gone to work. The HR department wants to know what % of your paycheck you want deferred into your 401K. You should:

Group of answer choices

Put in as much as the company will match in order to realize the maximum benefit

Do not max your contribution until you have an emergency cash reserve of 6 12 months

Put in as much as the rules allow you to so that you can quickly build up the value of your retirement portfolio

Invest a material amount in the companys stock because you will probably get to buy it at a good discount

Flag question: Question 27

Question 273.13 pts

Which of the following is not true about insurance?

Group of answer choices

the younger you are the cheaper the premiums are

the purpose of insurance is to cover losses that a person could not otherwise cover

you should not buy a significant amount of insurance while you are young because you dont need it

your employer probably offers adequate insurance coverage through your compensation package

Flag question: Question 28

Question 283.13 pts

Which of the following is not a regulation that pertains to investment management?

Group of answer choices

know your manager rule

know your client rule

fiduciary duty rule

suitability rule

Flag question: Question 29

Question 293.13 pts

When thinking about your future and making out a budget, which of the following items should you ignore:

Group of answer choices

Potential income from different professions you are considering

What your major should be in college

The financial circumstances of you and your family and of your spouse and your spouses family

The cost of living in different areas of the country

All of the items are important considerations

Flag question: Question 30

Question 303.13 pts

What is the clients role or responsibility in the client-advisor relationship?

Group of answer choices

Determine an appropriate asset allocation

Select individual securities

Inform his/her advisor of life changes that affect the risk/return profile

Look for the manager with the highest performance record

All of the above