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NEW QUESTION: 1
Which of the following statements is not true about a letter of intent?
A. the letter of intent has a maximum duration of 13 months
B. a shareholder may not redeem any shares for 13 months
C. a certain portion of shares purchased are held in escrow until the terms of the letter are met
D. a letter of intent may be backdated by 90 days
Answer: B
Explanation:
a shareholder may not redeem any shares for 13 months. Redemptions are permissible at
any time. However, since escrowed shares are set aside to cover the difference in sales loads based on
terms of the letter, redemptions prior to 13 months may liquidate the escrow account and thus return to
the investor 100% of net asset value.
NEW QUESTION: 2
One thing an Instructor should never do in class is:
A. Use Jargon
B. Use analogies
C. Use stories from the field
D. Use video recorder
Answer: D
NEW QUESTION: 3
Given the historical returns for the two stocks listed below, what can be said about the correlation coefficient?
A. it must be -1.0
B. it must be +1.0
C. it is zero
Answer: A
Explanation:
The returns of the two stocks move in opposite directions in an exact one-for-one trade-off.
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