Finra Exam Series-6 Topic 1 Question 47 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 47
Topic #: 1

[All Series-6 Questions]

Which of the following statements about hedge funds is true?

AThey are fairly low risk since the portfolio managers use investment strategies designed to ''hedge their bets.''

BThey are not regulated by the Investment Company Act of 1940.

CThey are considered to be very liquid investments.

DThey have low management fees, like index funds.

Show Suggested Answer

Suggested Answer: B

The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.

by Hoa at Aug 24, 2022, 11:51 PM

Limited Time Offer

25%

Off

Get Premium Series-6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jin

5 days ago

I think the answer is A.

upvoted 0 times

...