CIRO Retail Securities - RSE Exam Practice Test
What advantages can an alternative strategy fund offer to a portfolio of main market equity tracker funds?
Correct Answer: B
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Which of the following principles is essential for effective portfolio construction?
Correct Answer: B
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What is the expected return of a portfolio of investments if the risk-free rate is 5%, beta is 2.0, portfolio variance is 15% and market rate of return is 10%?
Correct Answer: C
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An 8% $1000 semiannual bond was issued with an 8-year tenor and currently has 4 years remaining until maturity. The yields on new 8-year and 4-year bonds of comparable quality are 8% and 7%, respectively.
What is the present value of the bond?
What is the present value of the bond?
Correct Answer: B
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A client wants to buy a recreational vehicle costing $25,000 in 3 years. They plan to make deposits of $630 at the start of each month into an investment account. What approximate annualised return is required to achieve their goal?
Correct Answer: C
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Which of the following is a characteristic commonly associated with alternative investment funds?
Correct Answer: A
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A pension portfolio must fund a known liability in seven years. The manager wants to reduce the effect that interest-rate changes could have on the portfolio's ability to meet that liability. Which fixed-income technique is most appropriate?
Correct Answer: D
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