SIE Exam Practice Question 540
Question: 540
Which of the following is the correct reason to purchase a particular investment for a client's portfolio?
Correct Answer: D
Explanation:
Blue chip common stocks provide a hedge against inflation. Growth stocks typically reinvest their earnings back into the company rather than pay dividends to shareholders. GNMA securities, not FNMA, are backed by the U.S. government. Global funds invest in both U.S. and international companies.
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