Unit quiz: Reading the Documents and the People Behind Them

Check understanding, separately from reading

5 questions · 80% to pass · no timer. This quiz checks the lessons in this unit. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

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Question 1

A fund's summary prospectus shows a net expense ratio of 0.72%, and a note beneath the fee table states that the adviser has agreed to waive 0.48 percentage points under an arrangement that ends in fourteen months. No renewal is stated. If you are still holding the fund after the waiver ends, which rate is the governing one?The contractual gross expense ratio of 1.20% that the notes identifyThe 0.72% net ratio, because the fee table's headline figure is the one printed in the fund's own document

Question 2

A licensed insurance agent who is not registered with the SEC or FINRA offers you a fixed indexed annuity and explains that she does not have a Form CRS because she is not required to give one. What is the accurate reading of that statement for your comparison of the proposal?Form CRS is required only of firms above an asset threshold, so its absence tells you nothing about her statusThe securities standards and relationship-summary disclosure do not reach her activity, so state insurance law governs the sale

Question 3

A portfolio of $120,000 falls 25% to $90,000. With no contributions or withdrawals and no fees or taxes in this illustration, what percentage gain applied to the $90,000 restores the original $120,000?About 33.33%, because $30,000 divided by $90,000 is one third25.00%, because the gain has to offset a decline of the same size

Question 4

Your written policy statement sets a 70/30 stock and bond target with a five-percentage-point rebalancing band. Stocks gain 20%, bonds are flat, and the portfolio moves from $100,000 to $114,000 with $84,000 in stocks and $30,000 in bonds. What does the rule require today?An immediate sale back to 70/30, because any drift from the target is a breach of the policyNo action, because a 73.68% stock weight is inside the 75% upper band edge

Question 5

In a taxable account you sell a fund position at a $9,000 loss and buy the same fund again twelve days later. Your marginal rate on the relevant income is a hypothetical 22%. What is the immediate consequence?The $9,000 loss is disallowed now and added to the basis of the replacement shares, postponing the deductionThe loss is deductible this year because the replacement purchase happened in a taxable account rather than a retirement account

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