SIE Mastery Exam 1

"DIAmonds" are a(n): A mutual fund based on the Dow Jones Industrial Average Index B mutual fund based on the Dow Jones Composite Index C exchange traded fund based on the Dow Jones Industrial Average Index D exchange traded fund based on the Dow Jones Composite Index - C. exchange traded fund based on the Dow Jones Industrial Average Index A "regulated" investment company is one that: A meets the definition of an investment company as specified under the Investment Company Act of 1940 B provides tax-deferred growth on distributions that are reinvested in additional share purchases C has registered with the SEC and thus is subject to SEC oversight and monitoring D complies with Subchapter M of the Internal Revenue Code and receives special tax treatment on distributions to shareholders. - D complies with Subchapter M of the Internal Revenue Code and receives special tax treatment on distributions to shareholders. A call premium on a bond is the amount: A the issuer pays the investor each year until maturity B by which the bond's redemption price maturity exceeds the purchase price C the bondholder will pay the issuer to call in bonds prior to maturity D above par issuer will pay the bondholder to call in bonds prior to maturity - D above par issuer will pay the bondholder to call in bonds prior to maturity A customer buys 100 shares of XYZ stock at $40. The stock pays a quarterly dividend of $.50. What is the dividend yield? A 1% B 1.25% C 4% D 5% - D++ 5%