Series 7 Exam Practice Test 6: Delivering Diversification with Packaged Securities

1. Which of the following types of management companies have a fixed number of shares outstanding?

2. Which of the following is exempt from the registration requirements under the Investment Company Act of 1940?

3. Breakpoints investors receive when purchasing a mutual fund are based on

4. Which of the following are classifications of real estate investment trusts?

I. Combination

II. Hybrid

III. Equity

IV. Mortgage

5. Ayla K. is employing a dollar cost averaging program for purchasing shares of Decco aggressive growth fund. She has been purchasing $440 per month of the fund for the past 4 months. The first month, she purchased the fund at $20.00 per share; the second month, $22.00 per share; the third month, $22.00 per share; the fourth month $20.00 per share. What is Ayla's average cost per share?

6. All of the following are TRUE of a Letter of Intent (LOI) EXCEPT

7. Open-end funds may issue

I. common stock

II. preferred stock

III. debt securities

8. A mutual fund has a net asset value of $9.40 and a sales charge of 6 percent. What is the public offering price?

9. Which of the following types of annuity payout options provide the investor with the highest periodic returns?

10. Which of the following types of life insurance policies has/have no investment component?