CSC2 Practice Questions

Yusef is a high-net-worth individual who wants to diversify his portfolio with private equity but is concerned with the potential disadvantages of this asset class. What disadvantage should Yusef be considering as a potential private equity investor?

If the manager believes the market is efficient, what investment strategy should they employ for a portfolio?

For what type of company is the dividend discount model least applicable?

What is name of the procedure used to calculate the income deemed to have been earned by segregated fund contract holders?

What does a simplified prospectus typically allow a fund company to do?

Jerry sells Company A’s regular bond because the thinks it is overvalued. Using the proceeds from the sale, jerry then busy Company A’s convertible bond because the thinks that the equity component is undervalued and that he convertible bond’s coupon rate is relatively attractive given his forecast of falling interest rates. What fixed-come management style is jerry most likely using?

Tom sold some bonds in his RRSP and used the total $100,000 in proceeds to buy a 75% guaranteed segregated fund. Three years later, Tom died. At the time of his death, the market value of the segregated fund was $700,000. Assuming no interim withdrawal on market value reset, what is the death benefit payable from this investment?

What investment dealer function is part of the back-office operations?

What might cause a company to have a high dividend payout rate?

In what way do ETFs differ from mutual funds?