CSC2 Exam Training Practice Tests (CSI Canadian Securities Course Exam2)]

Question 1

Which type of market participant is generally regulated as an alternative trading system?

A. Venture exchange B. Over-the-counter bulletin board. C. Dark pool D. Pink sheets

Correct Answer: C

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Question 2

What information is an investor unable to retrieve through the SEDAR+ website?

A. Annual information form. B. Registration information for dealers. C. Interim financial statements. D. Annual report.

Correct Answer: B

Question 3

What is one type of linked PPN in Canada?

A. Participation B. Performance C. Stock basket D. Zero-coupon plus option

Correct Answer: D

Question 4

Which one is a unique feature of mutual funds or ETFs?

A. They have a higher MER than traditional mutual funds. B. Their asset mix must be held consistent. C. They refuse pre-authorized contributions and systematic withdrawal plans. D. They offer an automatic rebalancing without the costs of trading the ETF.

Correct Answer: D

Question 5

What item compares the expected return of the market portfolio to the riskless rate?

A. Beta B. Risk premium C. Alpha D. Variance

Correct Answer: B

Question 6

A fixed-rate bond was originally priced at $100 and paid $5 per year in interest. Currently, the bond is trading at $102.75. What is the impact on the current yield of coupon of the bond as a result of the change in price?

A. The current yield is lower than 5% B. The current yield is higher man 5%. C. The coupon is lower than 5%. D. The coupon is higher than 5%.

Correct Answer: A

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Question 7

What is the meaning of ex-ante return?

A. The return of the security based on the risk-free rate. B. The historical return of the security. C. The expected return of the security. D. The real return on the security.

Correct Answer: C

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Question 8

What is a limitation of labour-sponsored venture capital corporations (LSVCCs)?

A. Federal tax credits are available only if no provincial tax credit is available B. Tax credits need to be repaid if shares are redeemed within eight years C. Investments are subject to a 17.5% federal credit on an annual investment D. Investments are available at a maximum of $5,000 invested in any one year

Correct Answer: B

Question 9

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

A. Market expectations. B. Anticipating remaining life expectancy. C. Psychological willingness to bear risk. D. Current financial burdens.

Correct Answer: C

Question 10

Siobhan designed an equity portfolio with a beta of 1.2. What is the expected return on the portfolio if the overall stock market return was 7.9%? (Round to the nearest decimal.)

A. 7.9% B. 9.5% C. 6.3% D. 6.6%

Correct Answer: B

CSI Canadian Securities Course Exam2 - CSC2 Exam Practice Test