Last year you bought a $15,000 face value bond which you bought for a price of 97 plus $200 in accrued interest. Today you sold the bond at a price of 98 plus $100 in accrued interest What capital gain or loss (if any) would you report on this sale? O a so b) $150 capital gain Oc) $ 75 capital gain d) insufficient information to calculate Over the last five years, the returns on ABC stock and the S&P/TSX Composite Index were as follows: Year 1 2 3 4 5 Return on ABC Stock 12% 6% -8% -6% 10% Return on the S&P/TSX Composite Index 9% 4% -5% -5% 9% Given this data, what is true about the beta of ABC stock relative to the S&P/TSX Composite Index? a) Less than 0. b) Greater than or equal to 0, but less than 1. c) Exactly 1. d) Greater than 1. Suppose that shares of Walmart rose rapidly in price from $45 to $100 as a result of a doubling of corporate profits. Later, they fell to $60 at which point some investors will buy, figuring it must be a bargain (relative to the recent $100). Such investors are displaying which bias? a) Representativeness Ob) Confirmation Oc) Recency d) Anchoring Previous Page Next Page Page 5 of 35 You own 200 shares of Apple and the company has just paid a dividend of US $5 per share. On the date of receipt, the US Dollar was worth 1.12 Canadian dollars. How much would you pay in Canadian tax assuming you have a 30% marginal tax rate? a) $168 Ob) $150 c) $952.00 d) $850 Which type of security would likely have the greatest allocation in a portfolio whose primary objective is income and whose secondary objective is tax minimization? a) Money market securities, b) Preferred shares c) Common shares d) Hedge funds. Select the most important advantage of a separately managed account. O a) They have the ability to time the sale of securities so as to minimize taxes payable. Ob) A single manager is responsible for the entire account and its investment policy Oc) They have a very low minimum account size. d) They have an identical portfolio composition for all clients