Financial Goals Objectives
Showing posts with label Financial Goals Objectives. Show all posts
Showing posts with label Financial Goals Objectives. Show all posts

Which of the following mutual funds should an investment adviser representative recommend to a corporate client whose objective is current income with moderate risk?

Which of the following mutual funds should an investment adviser representative recommend to a corporate client whose objective is current income with moderate risk?



A) Preferred stock fund.

B) Aggressive growth fund.

C) Money market fund.

D) High-yield bond fund.

A) Preferred stock fund.



Answer: A

A 27-year-old client is in the lowest tax bracket and seeks an aggressive long-term growth investment. If his investment adviser representative recommends a high-rated general obligation municipal bond, the IAR has:

A 27-year-old client is in the lowest tax bracket and seeks an aggressive long-term growth investment. If his investment adviser representative recommends a high-rated general obligation municipal bond, the IAR has:



A) made an unsuitable recommendation, since a municipal revenue bond would have been more appropriate.

B) made an unsuitable recommendation based on the client's needs and objectives.

C) recommended a suitable investment because GOs are good long-term investments.

D) committed no violation because municipal bonds are well suited for the market's volatility.



Answer: B

When making recommendations to an advisory client, which of the following carry the most weight?

When making recommendations to an advisory client, which of the following carry the most weight?


The client's risk tolerance.


Past performance of the adviser representative's recommendations.


The client's investment needs and objectives.


The client's previous investment experience with other advisers.



A) II and III.

B) II and IV.

C) I and III.

D) I and IV.



Answer: C

A new client inherits $25,000 and wishes to use the money to purchase an 8% municipal general obligation bond selling at an 8.45% yield. The $1 million bond issue, due in 15 years, is rated Baa. All of the following factors would result in your recommending against such a purchase EXCEPT:

A new client inherits $25,000 and wishes to use the money to purchase an 8% municipal general obligation bond selling at an 8.45% yield. The $1 million bond issue, due in 15 years, is rated Baa. All of the following factors would result in your recommending against such a purchase EXCEPT:




A) the client's job is not secure.

B) the client is willing to accept a moderate amount of risk.

C) the client is in the 18% tax bracket.

D) this would be the client's only investment.



Answer: B

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