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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Trade Execution and Market Integrity | 8–12% | - Order routing and best execution - Prohibited practices and compliance |
| Topic 2: KYC and Suitability | 20–24% | - Client information collection and updates - Suitability determination and documentation |
| Topic 3: Client Monitoring and Relationship Management | 8–12% | - Performance reporting and CRM2 - Complaint handling procedures |
| Topic 4: Portfolio Construction and Managed Accounts | 10–14% | - Asset allocation and risk metrics - Registered account types |
| Topic 5: Equities | 18–22% | - Equity product features and risks - Trading mechanics and market structure |
| Topic 6: Mutual Funds and ETFs | 20–24% | - Suitability and sales obligations - Fund structures and disclosure documents |
| Topic 7: Structured Products | 10–14% | - Product types and risk profiles - Applicable regulatory rules |
| Topic 8: Fixed Income | 18–22% | - GICs and other retail fixed-income products - Bond characteristics and pricing |
If the beta of a company is 1.8, what can be said with certainty about its risk profile?
Correct Answer: A 🗳️
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An investor is considering purchasing a preferred share that provides a fixed dividend for an extended period, with no set maturity date. Which type of preferred share best meets the investor's considerations?
Correct Answer: A 🗳️
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Which of the following principles is essential for effective portfolio construction?
Correct Answer: B 🗳️
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An investor is choosing between two bonds: Bond A with a term to maturity of 2 years and Bond B with a term to maturity of 10 years. If interest rates are expected to rise sharply next year and assuming all other things are equal, which bond should the investor select to minimize interest rate risk?
Correct Answer: D 🗳️
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A client sold a portfolio of stocks and realized a capital gain of $10,000 and a capital loss of $4,000. Under the Canadian capital gains tax system, what is the net taxable amount from these transactions?
Correct Answer: A 🗳️
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