1.

Chantal has similar returns on her individual investments in her portfolio with investments equally weighted, thus having similar return patterns. This is causing Chantal to not sleep well at night as when her investments do poorly, they all do poorly. Of course, when her investments do well, they all do well.

What is this correlation referred to?

Points: 1

1. Volatile correlation.
2. Neutral correlation.
3. Negative correlation.
4. Positive correlation.

2.

A homeowners insurance premiums can be increased or decreased due to the following: I. homeowners criminal record II. value of home III. background check on homeowner IV. deductible

Points: 1

1. II and III
2. I and II
3. II and IV
4. All the above

3.Which statements are true of reverse mortgages? I. It is a secured loan that allows older Canadians to generate income by using the equity in the home without having to sell it. II. The set-up costs are high. III. The interest that accumulates on the reverse mortgage loan will reduce the value of the estate. IV. In many cases, the loan does not have to be paid back until the death of the borrower.

Points: 1

1. I, II and III
2. All the responses
3. III and IV
4. II and III