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NEW QUESTION: 1
The AGRO Mutual Fund invests in aggressive growth stocks of midcap corporations. The fund is running an advertisement on the radio that informs the listeners that AGRO earned a 22% return last year while the S&P 500 Index returned only 10%. The ad also contains information regarding how an interested investor can contain a fund prospectus.
Has AGRO violated any securities laws with this advertisement?
A. Yes. Although AGRO provided the return on the S&P 500 as well as its own return, the S&P 500 Index is comprised of average risk stocks and is not an appropriate benchmark for AGRO to use.
B. No. In addition to providing the listeners with its own return last year, AGRO appropriately provided the listeners with a benchmark return; thus there has been no violation of any laws.
C. Yes. AGRO is required to provide information on the specific investments it made to earn that 22% return, given that the return is unusually high.
D. No. This would be considered a generic advertisement and not an offer to sell.
Answer: A
Explanation:
Explanation/Reference:
Explanation: Yes. When AGRO runs an advertisement that informs the listeners that it earned a 22% return last year while the S&P 500 Index returned only 10%, it has violated securities laws because although the fund provided the return on the S&P 500 as well as its own return, it failed to mention that the S&P 500 Index is comprised of large company stocks of average risk, which is not an appropriate benchmark for AGRO to use. The appropriate index is one comprised of similar stocks, such as the Russell Mid-Cap Growth Index. Furthermore, any advertisement referencing past returns must contain a statement that past performance is not indicative of future performance.
NEW QUESTION: 2
Which of the following tools is MOST helpful in estimating budgets for tasks within a large IT business application project?
A. Function point analysis (FPA)
B. Ganttchart
C. Balanced scorecard
D. Critical path methodology (CPM)
Answer: A
NEW QUESTION: 3
What are some differences between a Major upgrade and a Minor upgrade of OneFS?
A. Minor includes core operating system changes and Major is for core operating system changes and new OneFS functionality.
B. Minor is for code patches and Major is for Maintenance releases.
C. Major is a change to either of the first two decimal places of the OneFS version and Minor is a change to either of the last two.
D. Major is a change to one of the first three decimals of the OneFS version while Minor is a change to the last digit.
Answer: C
NEW QUESTION: 4
Whose approval is needed to replace a Stage Plan with an Exception Plan?
A. Project Manager
B. Corporate orprogramme management
C. Project Board
D. Team Manager
Answer: C
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