1. Mary bought a segregated for $400,000 in 2004. Her husband is the sole beneficiary of the plan. In 2013, Mary passed away from a terrible disease. Answer the following questions. Show all calculations and/or explanations (15 Marks).

a) If at the time of death, the value of the plan dropped to $200,000, what is the death benefit payout?

b) If at the time of death, the value of the plan increased to $500,000, what is the death benefit payout?

c) If at the time of death, the value of the plan dropped to $250,000, what is the total amount that Mary's husband will get?

2. What does each of the following acronyms stands for? (9 marks)

LSVCC

NAVPS

ACB

3. Indicate whether the following is true or false

1) Mutual funds are sold through a simplified prospectus.

2) ETFs have maturity dates.

3) A Fund Manager can short sell in a mutual fund.

4) The MFDA regulates the distribution of mutual funds.

4. William bought $10,000 of ABC mutual fund. He sold it for $15,000 after 3 years during which time he received $3000 in re-invested dividends. If William is in 40% tax bracket, how much taxes will he pay? Show three steps in your calculations: Adjusted cost base, capital gains and taxes. (20 marks).

5. John bought a Segregated Fund and insured Mary, but he designated Ruth to receive the insurance proceeds. According the contract, what is the role of each person?

(8 marks)

Mary -

Ruth -

6. Define the following terms (10 marks)

High Water Mark:

Hurdle Rate:

7. List 3 investor exemptions for hedge funds.

Advantages:

8. List and briefly describe the 3 main Alternative Investment Strategies.