SIE practice questionhardUITs
Upon purchasing units of a UIT, an investor should expect that:
- AThe portfolio’s composition will remain unchanged until maturity✓ Correct answer
- BThe portfolio manager will actively buy and sell securities
- CThe trust can be renewed at the investor’s option
- DUnits can only be sold at original purchase price
Explanation
Why A — The portfolio’s composition will remain unchanged until maturity
A is correct; UIT portfolios are fixed at inception. B is characteristic of mutual funds. C and D are not features of UITs.
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