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APMA Accredited Portfolio Management Advisor
Exam||VERIFIED EXAM!!!|| COMPLETE QUESTIONS
AND DETAILED SOLUTIONS LATEST UPDATE THIS
YEAR-JUST RELEASED||NEWEST EXAM!!
All of the following statements are true regarding the
annuitization of a variable annuity contract except
a. variable annuity contracts require the holder to select a
life annuity- period certain payout option
b. the variable annuity payout may vary depending on the
performance of the underlying securities
c. the number of variable annuity units is fixed
d. the holder may not change the payout option after it is
elected - Answer-a. variable annuity contracts require the
holder to select a life annuity- period certain payout option
ABLE accounts are:
A. used to save funds on a tax-deferred basis and may
only be used to pay for medical expenses
B. used to save funds on a tax-deferred basis to pay for
the ongoing care of disabled children below age 21
C. regulated by the MSRB
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D. regulated by FINRA - Answer-C. Regulated by the
MSRB
What is the purpose of rights of accumulation?
a. rights of accumulation allow an investor to choose
whether to apply accumulation (appreciation) in her
account to cash dividends or purchase of new shares
b. rights of accumulation allow an investor to pay a sales
charge based on a lower breakpoint calculated by
including account accumulation (appreciation) and new
investment funds
c. "rights of accumulation" is an IRS term that helps define
capital tax rates paid on account accumulation
d. rights accumulation are the basis for an automatic
investment program that purchases shares regularly and
thus uses dollar cost averaging - Answer-b. rights of
accumulation allow an investor to pay a sales charge
based on a lower breakpoint calculated by including
account accumulation (appreciation) and new investment
funds
An ABC Jan 50 call is trading at a premium of $2 when the
market price of ABC stock is $49. The time value per
share:
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a. 0
b. $1
c. $2
d. $3 - Answer-C. $2
The option premium has 2 components- "time value" and
"intrinsic value". In this example the intrinsic value is $0,
so the entire premium is made up of time value of $2.
A mutual fund letter or statement of intent:
a. covers a total of one year
b. is a binding agreement
c. is used by individuals who want to qualify for a lower
sales charge when purchasing mutual funds
d. may be backdated 60 days to cover a purchase made
previously - Answer-c. is used by individuals who want to
qualify for a lower sales charge when purchasing mutual
funds
a LOI usually covers a total time period of 13 months, is
always a non-binding agreement, and may always be
backdated 90 days to cover a previous purchase.
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Health Savings Account (HSAs) are
a. employer- established
b. funded only by the employee
c. limited to a $6,000 per year family contribution
d. limited to a $2,000 per year individual contribution -
Answer-a. employer- established
A review of major newspapers across the United States
reveals that "help wanted" advertisement lineage has
been decreasing. This is a:
A coincident indicator showing that economic activity is
likely to increase
B coincident indicator showing that economic activity is
currently at low levels
C leading indicator showing that economic activity is likely
to be slowing down
APMA Accredited Portfolio Management Advisor
Exam||VERIFIED EXAM!!!|| COMPLETE QUESTIONS
AND DETAILED SOLUTIONS LATEST UPDATE THIS
YEAR-JUST RELEASED||NEWEST EXAM!!
All of the following statements are true regarding the
annuitization of a variable annuity contract except
a. variable annuity contracts require the holder to select a
life annuity- period certain payout option
b. the variable annuity payout may vary depending on the
performance of the underlying securities
c. the number of variable annuity units is fixed
d. the holder may not change the payout option after it is
elected - Answer-a. variable annuity contracts require the
holder to select a life annuity- period certain payout option
ABLE accounts are:
A. used to save funds on a tax-deferred basis and may
only be used to pay for medical expenses
B. used to save funds on a tax-deferred basis to pay for
the ongoing care of disabled children below age 21
C. regulated by the MSRB
,2|Page
D. regulated by FINRA - Answer-C. Regulated by the
MSRB
What is the purpose of rights of accumulation?
a. rights of accumulation allow an investor to choose
whether to apply accumulation (appreciation) in her
account to cash dividends or purchase of new shares
b. rights of accumulation allow an investor to pay a sales
charge based on a lower breakpoint calculated by
including account accumulation (appreciation) and new
investment funds
c. "rights of accumulation" is an IRS term that helps define
capital tax rates paid on account accumulation
d. rights accumulation are the basis for an automatic
investment program that purchases shares regularly and
thus uses dollar cost averaging - Answer-b. rights of
accumulation allow an investor to pay a sales charge
based on a lower breakpoint calculated by including
account accumulation (appreciation) and new investment
funds
An ABC Jan 50 call is trading at a premium of $2 when the
market price of ABC stock is $49. The time value per
share:
,3|Page
a. 0
b. $1
c. $2
d. $3 - Answer-C. $2
The option premium has 2 components- "time value" and
"intrinsic value". In this example the intrinsic value is $0,
so the entire premium is made up of time value of $2.
A mutual fund letter or statement of intent:
a. covers a total of one year
b. is a binding agreement
c. is used by individuals who want to qualify for a lower
sales charge when purchasing mutual funds
d. may be backdated 60 days to cover a purchase made
previously - Answer-c. is used by individuals who want to
qualify for a lower sales charge when purchasing mutual
funds
a LOI usually covers a total time period of 13 months, is
always a non-binding agreement, and may always be
backdated 90 days to cover a previous purchase.
, 4|Page
Health Savings Account (HSAs) are
a. employer- established
b. funded only by the employee
c. limited to a $6,000 per year family contribution
d. limited to a $2,000 per year individual contribution -
Answer-a. employer- established
A review of major newspapers across the United States
reveals that "help wanted" advertisement lineage has
been decreasing. This is a:
A coincident indicator showing that economic activity is
likely to increase
B coincident indicator showing that economic activity is
currently at low levels
C leading indicator showing that economic activity is likely
to be slowing down
