Finra Exam Series-6 Topic 5 Question 85 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 85
Topic #: 5

[All Series-6 Questions]

: 130

When a client purchases a variable contract through you, he should be informed that his money will be invested:

Aat the most recent price for which the contract sold.

Bat the next price that is computed after the contract application is accepted by the insurance company.

Cat the previous day's close price for the contract.

Din a product with a guaranteed cash value.

Show Suggested Answer

Suggested Answer: B

The fund's beginning NAV was $9.66, its ending NAV was $12.00, and its distributions during the year totaled $0.22 a share, so the total return on the MedTech Fund over this period was 26.5%. Total return can be calculated as:

[(ending NAV + distributions) - beginning NAV]/beginning NAV = [($12.00 + $0.22) -$9.66]/$9.66 = 26.5%.

by Lauran at Aug 25, 2024, 09:32 PM

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