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CSI IFC Exam Dumps - Actual Questions Answers

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87%

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CSI IFC Questions Answers

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IFC Questions and Answers

Question # 1

Sonya, a mutual fund manager for Drake Financial, has had a stellar year in managing their Canadian equity portfolio and has outperformed the benchmark by over 200 basis points. She is now concerned that within the last couple of months of this calendar year, the Canadian equity market is due for a 10 to 15% pullback. Which investment strategy would be most appropriate for her to implement for the last couple of months of the year to offset the market correction?

A.

Buy put options on the iShares S&P/TSX 60 Index Fund

B.

Buy call options on the iShares S&P/TSX 60 Index Fund

C.

Increase her equity exposure to the consumer staples sector

D.

Reduce her equity exposure to the energy sector

Question # 2

What is a key difference between marketable government bonds and treasury bills?

A.

Treasury bills do not pay any coupon interest, while marketable bonds do

B.

Marketable government bonds may be sold at a discount while Treasury bills are sold at a premium

C.

Treasury bills trade in the over-the-counter market, while marketable bonds trade on the exchange

D.

Marketable government bonds actively trade in the secondary market while Treasury bills can only be bought from and sold to the government

Question # 3

Which of the following statements regarding mutual fund fees is correct?

A.

Redemptions are made from units held by investors to pay trailer fees.

B.

Trailer fees are only paid to mutual fund dealers when a purchase is made.

C.

The mutual fund dealer receives trailer fees based on the value of assets under management.

D.

Trading commissions are paid from the management fee.

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