QUESTION 7

1. Which of the following is not one of the advantages of owning exchange-traded funds in a well-diversified portfolio?

   		a. They offer ease of trading similar to stocks.
   		b. They may be shorted; therefore, investors may speculate on a downturn.
   		c. Arbitrage pricing mechanisms do not apply, so exchange-traded funds have more stable pricing and are less volatile.
   		d. Pricing is real time and is available throughout the day.

QUESTION 8

1. Rank the four types of investment companies from highest to lowest in terms of invested assets:

   		a. ETFs, mutual funds, closed-end funds, UITs.
   		b. Mutual funds, ETFs, closed-end funds, UITs.
   		c. ETFs, mutual funds, UITs, closed-end funds.
   		d. Mutual funds, ETFs, UITs, closed-end funds.