Q1. When comparing the fiduciary responsibility under the Prudent Investor Rule (PIR) with that under the Prudent Man Rule (PMR), which of the following is TRUE? The PIR does: A) permit the delegation of investment responsibility to third parties; the PMR does not permit the delegation of investment responsibility to third parties. B) permit the delegation of investment responsibility to third parties; the PMR does permit the delegation of investment responsibility to third parties. C) not permit the delegation of investment responsibility to third parties; the PMR does permit the delegation of investment responsibility to third parties.
Q2. The new Prudent Investor Rule states that the practice of diversification:
A) is not as important as generating current income. B) is expected in portfolios as a method of reducing risk. C) should not be practiced because it is too costly.
Q3. Which of the following statements about trustee actions is TRUE? Trustees must consider: A) an investment's risk/reward profile as it relates to the portfolio. B) the risk of an investment without regard to its return. C) neither the risk nor the return of the portfolio, instead focusing on trading costs.
Q4. Which of the following statements is part of the basic principles of the new Prudent Investor Rule?
A) Current income for the trust is totally disregarded in favor of growth. B) Excessive trading and fees should be avoided. C) Trustees must consider each investment against its own merits.
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发表于 2009-1-8 11:30
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