SIE Exam Question 821: Answer and Explanation

Question: 821

A diversified mutual fund cannot own more than __________ of the shares of a given company or more than __________ of fund assets in a given investment.

• A. 5%, 5%
• B. 10%, 5%
• C. 20%, 10%
• D. 20%, 20%

Correct Answer: B

Explanation:

A diversified mutual fund cannot own more than 10% of the shares of a given company or more than 5% of fund assets in a given investment.