Recommendations & StrategiesPregunta 60 de 100
An adviser notices a client has an unusually large, concentrated position in the client's employer stock. The primary concern the adviser should raise is:
a.The stock pays qualified dividends
b.Long-term capital gains treatment
c.Concentration risk, since both the client's job income and portfolio depend on one company
d.The stock's beta is exactly 1.0
Explicación
A concentrated position in employer stock exposes the client to significant unsystematic risk, compounded because both employment income and investment value depend on the same company. Diversification would reduce this concentration risk. Tax features are secondary to the risk concern.
Practica las 100 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- The present value of a future sum will be lower when:
- An investor wants exposure to a broad market index at low cost with high tax efficiency and intraday liquidity. Which vehicle is MOST appropriate?
- A client in the accumulation phase of a variable annuity is concerned about outliving assets in retirement. Annuitization with a life payout option primarily addresses:
- The alpha of a portfolio measures:
- A client withdraws funds from a traditional IRA before age 59.5 without qualifying for an exception. The tax consequence is generally:
- Modern portfolio theory suggests that the efficient frontier represents portfolios that:
Última revisión: · proceso editorial
Equipo Editorial de PrepPass · Verificado con NASAA Series 66 Uniform Combined State Law Exam · Cómo revisamos