Xian - Li believes she is a sophisticated investor. She has constructed her own portfolio and has had
some success. She does not believe in studying a company’s details such as earnings, expenses, or
assets. She is more concerned with patterns in a company’s stock price over time. She believes
patterns form and can be used to predict future movements in the market.
How does Xian - Li evaluate the companies in her portfolio?
Answer:C
Question — (Single Choice)
Yesterday, Mariana purchased mutual funds for the first time from Diablo, who is a Dealing
Representative for Horizon Financial. When Mariana mentions to her friend Marcus that she just
started to invest, Marcus confides that he experienced losses from mutual fund investing. Her initial
feelings of excitement have now changed to worry and regret. She wished she had talked to her
friend before investing and wonders if she can change her mind.
Which statement regarding the right of withdrawal applies?
Answer:A
Question — (Single Choice)
Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the following
features are characteristic of her investment?
Answer:D
Question — (Single Choice)
Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical that she
has really benefitted. This year she plans to file her own taxes for the first time.
What would be useful for her to know?
Answer:A
Question — (Single Choice)
One of your clients, Fernando, is approaching 71 years of age and has a few questions regarding life
income funds (LIFs).
Which of the following statements about LIFs is TRUE?
Answer:D
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