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NEW QUESTION: 1
Clem Shyster is a registered representative with a family of mutual funds. A married couple in their 50s sought his advice about how they should best invest an $80,000 profit that they had received when they sold a rental property they owned for a number of years. Their investment profile indicated to Clem that their main investment objective was capital appreciation and that they were willing to accept moderate levels of risk. Clem advised them to invest $10,000 in eight different growth funds, each of which had a 7% front-end load.
Has Clem violated any securities laws with his recommendation?
A. Yes. Although growth funds provide some amount of capital appreciation, Clem should have recommended that they spread their money among eight different aggressive growth funds instead, to achieve even greater capital appreciation.
B. No. Growth funds invest in stocks that are selected to provide the capital appreciation that Clem's clients need, and an investment in eight such funds will provide them with maximum risk diversification.
C. Yes. Clem should have advised them to invest in funds that had a deferred sales charge instead of a front-end load.
D. Yes. There is a lot of overlap of the individual stocks in which growth funds invest, so recommending that they spread their funds among eight different growth funds has not provided them with significantly more diversification, and it has cost them more to do so, which will benefit Clem.
Answer: D
Explanation:
Explanation/Reference:
Explanation: Yes, Clem has violated securities laws with his recommendation that his clients spread their money among eight different load, growth funds because there is a lot of overlap in the individual stocks in which these funds invest, so this strategy has not provided them with significantly more diversification; it has just cost them more, which will benefit Clem since he gets to pocket part of that load fee himself. He has made an unsuitable recommendation and has not upheld NASD's rules involving fair dealing with customers.
NEW QUESTION: 2
Note: This question is part of a series of questions that use the same or similar answer choices. An answer choice may be correct for more than one question in the series. Each question is independent of the other questions in this series. Information and details provided in a question apply only to that question.
You have a two-node Hyper-V cluster named Cluster1 at a primary location and a stand-alone Hyper-V host named Server1 at a secondary location.
A virtual machine named VM1 runs on Cluster1.
You configure a Hyper-V Replica of VM1 to Server1.
You need to perform a Test Failover of VM1.
Which tool should you use?
A. the configurehyperv.exe command
B. the Failover Cluster Manager snap-in
C. the Hyper-V Manager snap-in
D. the clussvc.exe command
E. the Computer Management snap-in
F. the Server Manager Desktop app
G. the cluster.exe command
H. the Disk Management snap-in
Answer: C
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
Refer to the Exhibit. An administrator has created the resource pool configuration shown in the Exhibit.
Based on the exhibit, which virtual machine(s) can be successfully powered on?
A. VM-K1 only
B. VM-K1 and VM-K2 only
C. VM-K1, VM-K2, and VM-M1
D. VM-M1 only
Answer: C
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Feedbacks
Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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