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NEW QUESTION: 1
Rich Quick is a broker-dealer registered in the state of Massachusetts. He occasionally trades on abnormalities he observes in bond yield spreads for his own account, short selling a bond that appears to be overpriced based on its yield and buying a bond that is identical in almost every respect except for the price, which is less than that of the other bond. He has been able to earn arbitrage profits 95% of the time when he does this. Rich Quick
A. is in violation of securities laws. Arbitrage is a prohibited activity.
B. is skilled if he is able to earn profits 95% of the time using this strategy.
C. is trading on insider information, which is a violation of securities laws.
D. engaged in a fraudulent activity.
Explanation: If Rich Quick is able to earn profits 95% of the time by trading on abnormalities he observes in bond yield spreads, he is skilled. There is nothing illegal in what he is doing. Arbitrageurs attempt to earn profits when they observe what they believe to be mispriced securities, and this is an accepted activity.
Rich is not using insider information; bond yields are publicly available information.
NEW QUESTION: 2
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NEW QUESTION: 3
The GRE keys must match.
To separate the traffic between the two virtualized networks, the GRE headers on the tunneled packets include a GRE Key that provides a unique Virtual Subnet ID for each virtualized network.
NEW QUESTION: 4
A bank requires tellers to get manager approval when a customer wants to open a new account. A recent audit shows that there have been four cases in the previous year where tellers opened accounts without management approval. The bank president thought separation of duties would prevent this from happening.
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D. Require the use of two different passwords held by two different individuals to open an account
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