SIE Exam Question 515: Answer and Explanation

Question: 515

A mutual fund has been seeking to attract new customers to invest in its growth fund. They have been running an advertising campaign that markets them as a diversified mutual fund. How much of any one company may they own?

• A. 10%.
• B. 9%.
• C. 5%.
• D. 15%.

Correct Answer: C

Explanation:

C: A mutual fund calling itself a diversified fund is limited to owning no more than 10% of any one company.