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CISI Investment Funds in Canada (IFC) Sample Questions:
1. Russell is a Dealing Representative with Wealth Quest Strategies Ltd., a mutual fund dealer and member of the Mutual Fund Dealers Association of Canada (MFDA). Russell is developing his website to include sales content on a Target Date Fund. Which of the following is Russell permitted to include on his website about the Target Date Fund?
i. the asset mix through the life of the fund until the future date
ii. the expected decline in the fund's risk level as the fund reaches its target date iii. the guaranteed return that the client will receive on the future date iv. a graphic illustration of the fund's promised growth on target date
A) ii and iv
B) i and ii
C) iii and iv
D) i and iii
2. As a measurement of risk, which of the following statements about beta is TRUE?
A) A larger beta for a stock means it will outperform the market at any point in the business cycle.
B) It is a relative measure that compares how an investment reacts to movements in a specific index.
C) It corresponds to a stock's riskiness in relation to the frequency of dividend payments over a certain period of time.
D) It is a ratio that compares a company's current rate of return to its average rate of return overtime.
3. What is a requirement when holding an RRIF?
A) The term must be based on the age of the holder of the RRIF
B) The RRIF must be terminated at the end of the year in which the client turns age 71
C) The RRIF must be fully managed as opposed to self-directed
D) Minimum annual withdrawals must be made from the RRIF
4. 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?
A) $8.25
B) $7.65
C) $7.19
D) $9.27
5. The owners of Underground Airways Ltd. want to take their privately owned corporation public through an initial public offering (IPO). They are speaking to a specialist from an investment dealer to determine whether it would be advisable to become listed on a stock exchange or the over-the-counter (OTC) market.
In comparing the two options, which of the following considerations is TRUE?
A) Underground would still be directly involved in the trading of their shares on either market.
B) Underground would be subject to less stringent listing requirements if they chose the stock exchange as compared to the OTC market.
C) If Underground chose to list on the OTC market, there would be no secondary market available for investors.
D) A stock exchange listing would provide Underground with greater market exposure and public confidence than listing on the OTC market.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: D |
By Julius
