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.

1. If at the time of death, the value of the plan dropped to $200,000, what is the death benefit payout?
2. If at the time of death, the value of the plan increased to $500,000, what is the death benefit payout?
3. If at the time of death, the value of the plan dropped to $250,000, what is the total amount that Marys husband will get?

2. What does each of the following acronyms stand for?

• LSVCC
• NAVPS
• ACB

3. Indicate whether the following is true or false

a. Mutual funds are sold through a simplified prospectus.

b. ETFs have maturity dates.

c. A Fund Manager can short sell in a mutual fund.

d. 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?

Mary -

Ruth -

6. Define the following terms

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.