Series 7 Exam Question 75: Answer and Explanation

Question: 75

Which of the following types of oil and gas partnerships are the riskiest?

• A. Wildcatting
• B. Developmental
• C. Income
• D. Combination

Correct Answer: A

Explanation:

A. Wildcatting (exploratory) programs are the riskiest because the partnership is drilling in unproven areas trying to find oil. This goes back to more risk = more reward. For this type of program, the risks are the greatest, but if the partnership finds oil, the rewards should be much higher than other oil and gas programs.