11. Which of the following document includes pertinent information about a client relationship with the mutual fund dealer and the sales representative. It is provided and discussed with client upon account opening.

A.National Instrument 81-102

B.Prospectus

C. Offering Memorandum

D. Relationship Disclosure

12. Which statement regarding correlation is correct?

A. Risk reduction is achieved by adding securities to a portfolio that are perfectly

correlated with one another.

B. The effects of diversification increase exponentially with the number of

securities added to a portfolio.

C. The maximum gain from diversification is achieved when securities held within a portfolio are perfectly negatively correlated.

D. Adding securities to a portfolio that are strongly correlated will increase

portfolio diversification.

13 Which of the following types of mutual funds have a maturity date?

A. Fixed Income mutual funds

B. Target-date mutual funds

C. Equity mutual funds

D. Money Market mutual funds

14. A client wants to begin withdrawing capital from her mutual fund portfolio to help finance her retirement. She wants to withdraw a specified amount of money each month over the next ten years with the intent that all of her capital will be exhausted when the plan ends. Based on this information, what type of withdrawal plan is best suited to meet your client's need?

A. Life expectancy adjusted withdrawal plan.

B. Fixed-period withdrawal plan.

C. Ratio withdrawal plan.

D. Fixed-dollar withdrawal plan.

15. Which statement about the quick ratio is correct?

A. lnventory is included because it is a liquid asset.

B. The ratio is not important provided the rate of inventory turnover is low.

C. lt measures the ability of the firm to meet its long-term commitments.

D. The ratio shows how well current liabilities are covered by the company's most

liquid assets.

17. Which statement about a hedge fund with a hurdle rate of 4% is correct, assuming that the high water mark has been met?

A. The hedge fund manager will earn a management fee when the return on the

fund is greater than its benchmark return plus 4%.

B. The hedge fund manager will earn an incentive fee when the return on the

fund is greater than its benchmark return plus 4%.

C. The hedge fund manager fund will earn a management fee when the return on

the fund is greater than 4%.

D. The hedge fund manager will earn an incentive fee when the return on the

fund is greater than 4%.

18. Select the statement that best describes inverse yield curve.

A. When long bond yields fall, short-term rates rise.

B. When an investor switches from short-term bonds to long-term bonds.

C. A strategy of switching from debt securities to equity securities.

D. A description of a technical analysis technique that describes a sell strategy.

19. Which ratio is used to measure management's efficiency in turning over the

company's goods at a profit?

A. Earnings per share.

B. Gross profit margin.

C. Inventory turnover.

D. Price-earnings multiple.

20. Segregated Fund are regulated by guidelines outlined by:

A. Federal Insurance Regulators

B. Segregated Fund Commissions

C. Canadian Life and Health Insurance Association Inc.

D. Provincial Life Insurance Regulators

22. An investor in a 40% marginal tax bracket receives $1,000 in interest income in her TFSA. Calculate the income tax payable.

A. $0

B. $400

C. $500

D. $600