QUESTION 129
What does a normal yield curve look like?

QUESTION 130
You are meeting a potential client, William, for the first time. He is a high net worth individual and you are keen to get his business. Which of the following would you consider the most important to create an impressive first impression on your potential client?

QUESTION 131
Which statement best describes what a rational investor will do when comparing the risk and return of two investments?

QUESTION 132
What type of GIC would be most appropriate for an investor who believes equity markets will be strong in the next five years?

QUESTION 133
A client has $100,000 in savings, $5,000 in bank accounts, and $10,000 in loans. Calculate his net worth.

QUESTION 134
Which statement best describes what a rational investor will do when comparing the risk and return of two investments?

QUESTION 135
At 4:00 p.m. Eastern Time on July 6, the following information is collected for the Marigold Canadian Dividend Fund:
What is the net asset value per unit NAVPU for the Marigold Canadian Dividend Fund for July 6?

QUESTION 136
Darryl has a diversified investment portfolio of mutual funds in a non-registered account with Investwell Mutual Funds, a mutual fund dealer. Darryl’s diversified portfolio is composed of 3 mutual funds. Each mutual fund is currently worth about $100,000. The ABC Canadian Equity Fund has a total return of 6%, the DEF Bond Fund has a total return of 8% and GHI Global Equity Fund has a total return of 10%. Darryl wants to make an in-kind contribution to his registered retirement savings plan (RRSP) account. He has unused RRSP contribution room of $60,000.
From a tax-efficient viewpoint, which funds contribute in-kind to his RRSP account?

QUESTION 137
What is Widget Inc.’s gross profit?
Widget Inc. Earnings Statement
Sales: $200,000
Cost of Goods Sold: $80,000
Selling & General Expenses: $40,000
Depreciation: $5,000
Total Expenses: $30,000
Net Earnings: $40,000

QUESTION 138
What ethical standard deals with unsolicited orders?

QUESTION 139
Which example demonstrates direct use of capital savings?

QUESTION 140
What purpose does it serve for non-money market mutual funds to hold money market instruments?

QUESTION 141
Ellen and her only son Jeff live on the family farm with her father George. Jeff is five years old and Ellen has decided that it is time to start saving for Jeff’s post-secondary education. She has called you to ask about registered education savings plans (RESPs).
Which of the following statements is TRUE?

QUESTION 142
You are the portfolio manager for the ABC asset allocation fund. Interest rates are going up; the stock market has been very volatile recently and is forecast to continue that way for the next two quarters. What changes, if any, will you make to your current asset allocation of 50% bonds and 50% equities?

QUESTION 143
Dale will be using his mutual fund portfolio to supplement his income from other sources. He is comfortable with variable payouts and fluctuating markets. What is the best solution for Dale?

QUESTION 144
Exchange traded funds (ETFs) that track an index and index mutual funds have many similarities. However, what is a major difference between these two products?

QUESTION 145
Megan purchases a treasury bill for $98,200. When it matures for $100,000, how does Megan treat the $1,800 difference?

QUESTION 146
What statement CORRECTLY describes a key difference between bonds and debentures?