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NEW QUESTION: 1
Which of the following statements about portfolio management is FALSE?
A. Interest and dividends are typically taxed at a higher rate than capital gains.
B. Mutual funds face two basic constraints: time horizon and liquidity concerns.
C. The purpose of the investment policy includes imposing discipline on the client.
D. Deferred tax investments may be appropriate for investors with tax concerns.
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.
NEW QUESTION: 2
The objective of anti-fraud controls is to:
A. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.
B. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk
C. Completely eliminate inherent fraud risk
D. Completely eliminate residual fraud risk
Answer: D
NEW QUESTION: 3
Which of the following binds a subject name to a public key value?
A. A secret key infrastructure
B. A public-key certificate
C. A public key infrastructure
D. A private key certificate
Answer: B
Explanation:
Explanation/Reference:
Remember the term Public-Key Certificate is synonymous with Digital Certificate or Identity certificate.
The certificate itself provides the binding but it is the certificate authority who will go through the Certificate Practice Statements (CPS) actually validating the bindings and vouch for the identity of the owner of the key within the certificate.
As explained in Wikipedia:
In cryptography, a public key certificate (also known as a digital certificate or identity certificate) is an electronic document which uses a digital signature to bind together a public key with an identity - information such as the name of a person or an organization, their address, and so forth. The certificate can be used to verify that a public key belongs to an individual.
In a typical public key infrastructure (PKI) scheme, the signature will be of a certificate authority (CA). In a web of trust scheme such as PGP or GPG, the signature is of either the user (a self-signed certificate) or other users ("endorsements") by getting people to sign each other keys. In either case, the signatures on a certificate are attestations by the certificate signer that the identity information and the public key belong together.
RFC 2828 defines the certification authority (CA) as:
An entity that issues digital certificates (especially X.509 certificates) and vouches for the binding between the data items in a certificate.
An authority trusted by one or more users to create and assign certificates. Optionally, the certification authority may create the user's keys.
X509 Certificate users depend on the validity of information provided by a certificate. Thus, a CA should be someone that certificate users trust, and usually holds an official position created and granted power by a government, a corporation, or some other organization. A CA is responsible for managing the life cycle of certificates and, depending on the type of certificate and the CPS that applies, may be responsible for the life cycle of key pairs associated with the certificates
Source: SHIREY, Robert W., RFC2828: Internet Security Glossary, may 2000.
and
http://en.wikipedia.org/wiki/Public_key_certificate