Under the UCITA, If a Contract Requires a Fee of More

question 61

Multiple Choice

Under the UCITA, if a contract requires a fee of more than , it is enforceable only if it is authenticated.

• A) $500
• B) $1,000
• C) $2,000
• D) $5,000

---

Definitions:

Systematic Risk

This is the exposure to uncertainty faced by all investments in a market or a sector, and is also recognized as market risk or non-diversifiable risk.

Unsystematic Risk

The risk of price change due to the unique circumstances of a specific security, as opposed to the market as a whole.

Market Risk Premium

The extra return expected by investors for taking on the risk of investing in the stock market over a risk-free rate.

Security Market Line

A line representing the relationship between the expected return of a market security and its risk, as measured by beta.