Series 65: Exercise

Exercise

Answer True or false

1. 1. True or false. Diversification should be considered part of the prudent investor standard, as it tends to reduce potential risk.
2. 2. True or false. Under the suitability rule, securities professionals should always try to remove any potential for client risk.
3. 3. True or false. As long as an agent discusses in full detail a client’s investment needs, wants, and expectations before engaging in any trades, the suitability requirement has been met.
4. 4. True or false. Until all relevant suitability information has been considered, a broker-dealer is prohibited from engaging in all securities transactions for a client.
5. 
   

Answers

1. 1. True. Portfolio diversification, since it red