Question 1

Cristina wants to add a mutual fund to her portfolio offering dividend income. She is considering either apreferred dividend fund or a standard equity fund. What is an important difference for Cristina to considerwhen comparing these two types of funds?

Options :

A : The standard equity fund would track an index and have less volatility.

B : A preferred dividend fund takes a more passive approach to investing.

C : The standard equity funds are willing to put capital at substantially greater risk.

D : A preferred dividend fund would offer more opportunity for capital gains and appreciation.

Answer: C

Question 2

Your client, Kimberly has investments in both registered and non-registered plans. Which of the followinginvestment strategies is best suited for Kimberly from a tax perspective?

Options :

A : Include investments paying capital gains in the registered plan and foreign pay investments in the nonregistered plan.

B : Include domestic pay assets in the registered plan and foreign pay assets in the non-registered plan.

C : Include interest paying investments in the registered plan and dividend paying investments in the nonregistered plan.

D : Include dividend paying investments in the registered plan and interest paying investments in the nonregistered plan.

Answer: C

Question 3

If an investor was looking for an investment with a risk equal to that of the market, which factor would shewant in an investment?

Options :

A : a beta of 0

B : a standard deviation of 1

C : a standard deviation of 0

D : a beta of 1

Answer: D

Question 4

How can specialty mutual funds mitigate some of the risks associated with the product?

Options :

A : Reduce risk by holding securities with high market betas

B : Increase diversification by holding securities with low correlation

C : Increase returns through derivative market strategies

D : Reduce volatility by investing in fewer sectors

Answer: B

Question 5

You are collecting know your client (KYC) information for your new client, Yael. She has recently acceptedan early retirement package from her employer and has $100,000 to invest. She is looking for an investmentthat will provide income to help pay her ongoing monthly expenses. Without this extra income, she wouldhave trouble paying her bills. From your discussions, Yael understands that markets fluctuate and says she iscomfortable with high risk. Which of the following would be a suitable investment?

Options :

A : global equity fund

B : money market fund

C : mortgage fund

D : Canadian equity index fund

Answer: C