Free Oracle 1Z0-1116-2 Exam Questions

Become Oracle Certified with updated 1Z0-1116-2 exam questions and correct answers

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Total 40 Questions | Updated On: Mar 04, 2025

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Question 1

A stockbroking firm receives both buy and sell orders for the same security but from different clients. How can they best avoid a conflict of interest?

A : Withdraw their services for the transaction

B : Place orders as they are received from the clients

C : Openly disclose all orders received to the clients

D : Process the sell orders before the buy orders

Answer: B

Question 2

Performance attribution analysis attempts to explain why a portfolio had a certain return. It does so by breaking down the performance and attributing the results based on the decisions made by the fund manager on which of the following?

A : Asset allocation alone

B : Asset allocation and sector choice only

C : The combination of asset allocation, sector choice, and security selection

D : The combination of asset allocation, sector choice, security selection, and risk analysis

Answer: C

Question 3

What financial principle requires an adviser to gather extensive information from a client before making a recommendation?

A : Disclosure

B : Transparency of trading

C : Risk reduction

D : Know your customer

Answer: D

Question 4

According to Modern Portfolio Theory (MPT), portfolios below the efficient frontier are not efficient because:

A : They attract additional charges

B : Risk-free assets are not profitable

C : The investor assumes proportionately higher risk for lower incremental returns

D : A greater return could be achieved for the same risk