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CSC2 Canadian Securities Course Exam 2 is now Stable and With Pass Result | Test Your Knowledge for Free

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CSC2 Practice Questions

Canadian Securities Course Exam 2

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Total Questions : 232

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Question # 41

Which asset allocation technique is used to shift the portfolio away from its policy mix to take advantage of market opportunities?

Options:

A.  

Dynamic

B.  

Tactical

C.  

Strategic

D.  

Event-driven

Discussion 0
Question # 42

According to the life-cycle hypothesis, what is the single most important determinant of a client ' s asset allocation, regardless of stage?

Options:

A.  

Anticipating remaining life expectancy.

B.  

Psychological willingness to bear risk.

C.  

Market expectations.

D.  

Current financial burdens.

Discussion 0
Question # 43

Kenji is ready to place a large trade in a European small-cap ETF, traded on the TSX. It is 10 a.m. in Toronto, where Kenji is located. What trading tip can Kenji use to protect his trade from sudden price movements?

Options:

A.  

Place his trade by executing it in small portions at a time.

B.  

Place his trade when a trading halt is issued for any underlying ETF holding.

C.  

Place his trade close to the end of the TSX ' s regular trading hours.

D.  

Place his trade by using a limit order.

Discussion 0
Question # 44

Which factor would deter an investor from investing in a company’s convertible preferred shares?

Options:

A.  

Common stock outlook has been downgraded.

B.  

Long life of the conversion privilege.

C.  

High preferred dividend coverage ratio.

D.  

The equity per preferred share decreased to three times the value of assets.

Discussion 0
Question # 45

An investment analyst at a bank is reviewing the high, low and closing prices of a financial services stock. What type of analysis is this analyst conducting?

Options:

A.  

Quantitative analysis

B.  

Moving average analysis

C.  

Chart analysis

D.  

Cycle analysis

Discussion 0
Question # 46

What is a key characteristic of an actively managed product that might interest an investor?

Options:

A.  

Assumes only systematic risk.

B.  

Potential to outperform the market.

C.  

Low fees.

D.  

Access to money at any time.

Discussion 0
Question # 47

What is the best description of growth-style investment managers?

Options:

A.  

Managers focus on identifying the current phase of the economic cycle, the direction the economy is headed in, and the various sectors affected

B.  

Managers buy discounted stocks that should eventually rise in price by screening stocks for cheap fundamentals

C.  

Managers are usually concerned with quarterly portfolio fluctuations

D.  

Managers deliver long-term total return mostly through capital appreciation

Discussion 0
Question # 48

What is margin in an equity transaction?

Options:

A.  

Loan that a dealer extends to a client to buy securities.

B.  

Amount paid by a client when he uses credit to buy securities

C.  

Good-faith deposit to ensure the client will make future financial obligations

D.  

interest paid by the client to borrows securities.

Discussion 0
Question # 49

Which asset type is classified as a fixed-income asset for portfolio management purposes?

Options:

A.  

Money market securities

B.  

Preferred shares.

C.  

Convertible bonds.

D.  

Bonds with a maturity of one year or less.

Discussion 0
Question # 50

When considering the overall investment objectives of liquid alternatives, what time horizon is the most appropriate for retail investors when investing in these funds?

Options:

A.  

Short-to medium-term

B.  

Short-term

C.  

Long-term

D.  

Medium-term

Discussion 0
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