Question 1

A real estate investment trust (REIT) is required to invest what percentage of total assets in real-estate-related assets to maintain favorable tax treatment?

Options :

A : At least 50% of total assets

B : At least 75% of total assets

C : At least 90% of total assets

D : 100% of assets

Answer: B

Question 2

A customer buys 100 ABC at $50 and at the same time sells an ABC April 50 call at $8. At expiration, ABC must be at what market price for the customer to break even?

Options :

A : $42

B : $44

C : $50

D : $58

Answer: A

Question 3

A registered representative who is terminated from a broker-dealer must notify FINRA of a residential address change for what period of time after termination?

Options :

A : One year

B : Two years

C : Three years

D : Six years

Answer: B

Question 4

An investor wants to purchase mutual fund shares, but she is concerned about the tax efficiency of the fund. Which of the following disclosures required under industry regulations will help the investor make an informed decision?

Options :

A : The fund-s turnover ratio

B : Sales charges and breakpoint discount opportunities

C : The commissions that the fund pays on each transaction

D : Projections of future dividend and capital gains distributions

Answer: A

Question 5

Which of the following statements best describes an American Depositary Receipt (ADR)?

Options :

A : ADRs trade like U.S. issues and are quoted in U.S. dollars.

B : ADRs trade like U.S. issues and are quoted in foreign currency.

C : ADRs represent shares of a U.S. security held in foreign commercial banks.

D : ADRs represent shares of a foreign security held in foreign commercial banks.

Answer: A