SIE (Securities Industry Essentials) Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Ace your Securities Industry Essentials (SIE) Exam with Examzify! Our practice exam features flashcards, multiple-choice questions with detailed explanations, and insightful tips to ensure your success.

Start Multiple Choice Practice Test
Start Flash Cards

Practice this question and more.

What do Direct Participation Programs (DPPs) provide to investors?

  1. A fixed rate of return

  2. Guaranteed liquidity

  3. Exposure to non-correlated assets

  4. Exemption from taxes

The correct answer is: Exposure to non-correlated assets

Direct Participation Programs (DPPs) provide investors with exposure to non-correlated assets. This means that DPPs invest in assets that have little to no correlation to traditional financial markets, making them a potential hedge against market volatility. Options A and B are incorrect because DPPs do not offer a fixed rate of return nor do they guarantee liquidity. Option D is also incorrect because DPPs are not exempt from taxes, although they may provide certain tax advantages in some cases. Therefore, the best answer is C, as it accurately reflects the main benefit of investing in DPPs.

More Questions Like This