Question 1

A stock's price has recently been fluctuating between $45 and $55. If the price breaks above $55 and establishes a new high, what is the likely new support level based on technical analysis?

Options :

A : $45.

B : $60.

C : $55.

D : $50.

Answer: C

Question 2

What is typically discussed during the establishment of the client-advisor relationship step?

Options :

A : The client's investment goals.

B : The current financial and personal status.

C : By what means does the client prefer to communicate with the advisor.

D : What services will the advisor provide.

Answer: D

Question 3

What is a defining characteristic of high-frequency trading (HFT)?

Options :

A : Trades are executed at a slower pace to ensure accuracy.

B : Trades are executed in milliseconds or microseconds, focusing on small price imbalances.

C : The trades are typically of very large size with high market impact.

D : HFT portfolios have turnover rates similar to traditional mutual funds.

Answer: B

Question 4

Which of the following statements best describes the difference between indexing and closet indexing?

Options :

A : Indexing employs high-frequency trading to adjust to market changes, while closet indexing maintains a fixed asset allocation.

B : Indexing involves active stock selection to outperform the benchmark, whereas closet indexing completely avoids market benchmarks.

C : Indexing seeks to replicate the performance of a market benchmark exactly, while closet indexing closely mimics the benchmark without exact replication.

D : Indexing aims to outperform the benchmark through strategic asset allocation, while closet indexing replicates the benchmark without modification.

Answer: C

Question 5

When considering the overall investment objectives of liquid alternatives, what time horizon is the most appropriate for retail investors when investing in these funds?

Options :

A : Short-to medium-term

B : Short-term

C : Long-term

D : Medium-term

Answer: C

Free CSC2 Mock Exam – Practice Online Confidently

Buying Options: