Finra Exam Series-6 Topic 5 Question 85 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 85
Topic #: 5

[All Series-6 Questions]

: 130

When a client purchases a variable contract through you, he should be informed that his money will be invested:

Aat the most recent price for which the contract sold.

Bat the next price that is computed after the contract application is accepted by the insurance company.

Cat the previous day's close price for the contract.

Din a product with a guaranteed cash value.

Show Suggested Answer

Suggested Answer: B

The fund's beginning NAV was $9.66, its ending NAV was $12.00, and its distributions during the year totaled $0.22 a share, so the total return on the MedTech Fund over this period was 26.5%. Total return can be calculated as:

[(ending NAV + distributions) - beginning NAV]/beginning NAV = [($12.00 + $0.22) -$9.66]/$9.66 = 26.5%.

by Lauran at Aug 25, 2024, 09:32 PM

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Pearlie

22 days ago

B) is the obvious choice here. Unless the client wants their money to be invested in a black hole, then D) might be the way to go.

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Sang

1 months ago

C) Previous day's close price? Might as well just light the client's money on fire.

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Eric

3 days ago

B) at the next price that is computed after the contract application is accepted by the insurance company.

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Adelina

4 days ago

A) at the most recent price for which the contract sold.

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Rene

1 months ago

A) No way, they can't just use the most recent price. That's not fair to the client!

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Royal

1 months ago

D) a guaranteed cash value product? That's just too good to be true! Where do I sign up?

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Zona

8 days ago

D) in a product with a guaranteed cash value.

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Markus

22 days ago

C) at the previous day's close price for the contract.

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Reiko

27 days ago

B) at the next price that is computed after the contract application is accepted by the insurance company.

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Beatriz

1 months ago

A) at the most recent price for which the contract sold.

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Tatum

1 months ago

B) seems like the correct answer. The client's money should be invested at the next price computed after the contract is accepted, not the most recent or previous day's price.

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