SIE Exam Practice Question 11

Question: 11

Which of the following is false regarding collateralized mortgage obligation (CMO) advertisements?

A. Advertisements may not contain a comparison with any other investment vehicle.

B. Advertisements may contain comparisons with CDs.

C. Advertisements must include a description of the initial issue tranche.

D. Advertisements that contain an anticipated yield must disclose the prepayment assumption used to calculate the yield.