Investment Management 1. which of the following is a clear violation of existing

ID: 2810182 • Letter: I

Question

Investment Management

1. which of the following is a clear violation of existing security laws?

A. Front running by brokerage firms.

B. Insider trading.

C. Self dealing by mutual fund companies.

D. Failure to disclose conflict of interest.

E. Pump-and-dump practice.

2 The standard deviation is a measure of:

A. volatility.

B. total return.

C. capital gains.

D. changes in dividend yields.

E. changes in the capital gains rate.

3. A call option is an agreement that:

A. obligates both the buyer and seller to a future transaction.

B. grants the seller the right to buy a security at a predetermined price.

C. gives the buyer the right to purchase an asset at some point in the future.

D. grants the seller the right, but not the obligation, to sell an asset.

E. presets a price but not a time period.

B. Insider trading.

A. volatility.

C. gives the buyer the right to purchase an asset at some point in the future.

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