Finra Exam Series-6 Topic 7 Question 92 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 92
Topic #: 7

[All Series-6 Questions]

By investing in a diversified portfolio, an investor will:

Alower both his risk and his expected return.

Blower his risk without affecting his expected return.

Clower his risk and increase his expected return.

Deliminate all the market risk associated with his investment portfolio.

Show Suggested Answer

Suggested Answer: A

Among other things, the trade confirmation that Anna receives must stipulate the items described in Selections I and III only. The trade confirmation that Anna receives from GetErDone must stipulate the time and date of the transaction, the number of shares sold, and the price at which they were sold. The exchange or ECN on which the transaction was executed is not provided on the confirmation statement. Whether GetErDone acted as a principal or a broker in the transaction does need to be stipulated, but in this instance GetErDone acted as a broker, not a principal. GetErDone did not itself buy the shares from Anna.

by Monroe at Oct 21, 2024, 10:01 AM

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Dominic

2 months ago

Lowering risk and increasing return? Sounds like the financial equivalent of a perpetual motion machine. Where do I sign up?

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Angella

17 hours ago

That's right! By diversifying, you can lower risk without sacrificing potential return.

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Leota

18 days ago

D) eliminate all the market risk associated with his investment portfolio.

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Ryan

23 days ago

A) lower his risk without affecting his expected return.

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Pa

25 days ago

C) lower his risk and increase his expected return.

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Elmira

1 months ago

A) lower his risk without affecting his expected return.

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Verda

2 months ago

Diversification, the financial equivalent of not putting all your eggs in one basket. Except in this case, the eggs are your hard-earned money. Better choose wisely, folks!

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Moira

2 months ago

Ah, the age-old question of risk and return. If only we could eliminate all market risk and still get great returns. Guess I'll have to settle for the good old diversification strategy.

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Shantell

16 hours ago

By diversifying, we can lower our risk without sacrificing returns.

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Louisa

18 days ago

I agree, it's important to have a mix of investments.

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Chi

1 months ago

Diversification is key to managing risk.

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Polly

2 months ago

Hmm, this is tricky. I'm pretty sure option B is the correct answer, but I can see how the other options might sound tempting. Gotta love those financial conundrums!

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Rosenda

2 months ago

I know investing in a diversified portfolio is important, but the idea of lowering risk and increasing expected return seems too good to be true. C'mon, there's no free lunch in the investment world!

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