PSOFT Exam Questions and Answers

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PSOFT - BCS Professional Certificate - Software Tester

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NEW QUESTION: 1
Which of the following statements about portfolio management is FALSE?
A. The purpose of the investment policy includes imposing discipline on the client.
B. Mutual funds face two basic constraints: time horizon and liquidity concerns.
C. Deferred tax investments may be appropriate for investors with tax concerns.
D. Interest and dividends are typically taxed at a higher rate than capital gains.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The two constraints faced by mutual funds are: laws created to protect the investors and investment choices as defined in the prospectus.
The other statements are true. Interest and dividends are typically taxed at a higher rate than capital gains.
Deferred tax investments such as 401(k) plans allow the investor to delay paying taxes until a later date and are an important tool for an invest with current tax concerns. The investment policy imposes discipline on both the client and portfolio manager.


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