Under the investment advisers act of 1940, which of the following statements are true regarding advisory contracts?

i advisory fees cannot be based upon capital gains in the account
ii advisory fees for clients with at least $1,000,000 of assets under management; or $2,000,000 net worth; can have a fee that is partly based upon capital gains
iii advisory contracts must be filed with the sec if they allow for $1,200 or more of prepaid advisory fees, 6 or more months in advance of services rendered
iv advisory contracts cannot contain provisions that violate federal law

a. i and ii only
b. iii and iv only
c. i, ii and iv
d. i, ii, iii, iv

answer: a

explanation:  

stocks and bonds are the two main classes of assets investors use in their portfolios. stocks offer an ownership stake in a company, while bonds are akin to loans made to a company (a corporate bond) or other organization (like the u.s. treasury). in general, stocks are considered riskier and more volatile than bonds.

savings accounts are just money in a bank- they are insured by the fdic for up to 250,000.   very little risk

the average mutual fund holds hundreds of different securities, which means mutual fund shareholders gain important diversification at a low price. which means if one stock or bond drops it will have very little affect on the mutual fund - again very little risk

because he didn't know how to do it

both the house and senate must approve of the conference report. after a bill has been approved by both the house and senate in identical form, it is sent to the president. if the president vetoes a bill, congress may attempt to “override the veto.”