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Which of the following statements is correct if some securities have appreciated

ID: 2571575 • Letter: W

Question

Which of the following statements is correct if some securities have appreciated in value while other securities have depreciated in value? O A. Each security in the distribution is valued independently. Only those securities that have increased in value can be distributed, and the net increase is allocated among the distributed securities. Cash must be distributed for those securities that have decreased in value. O B. The net unrealized appreciation is the net of the appreciation and depreclation in the employer securities that are distributed, and it is allocated among the distributed securities. O C. Two pools of securities are created. One pool is for those securities that have increased in value, and the other pool is for those securities that have decreased in value. O D.

Explanation / Answer

Answer is option (A)

Every security is valued independently based on its distribution

it all depends on market condition and economic condition it can happen vice a versa also.

so each security is independent.

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