Tony, the investment manager of True North Canadian Equity Fund is deciding on some new investments. He has done an economic analysis of the various provinces and sectors of the Canadian economy and has determined that Nova Scotia and Alberta present the best prospects. He has also identified potential in the oil and gas sector. He narrows down his selection to an oil supply firm in Medicine Hat and a drilling company in Halifax.
What investment approach is Tony employing?

• A.bottom-up
• B.growth at a reasonable price (GARP)
• C.value investing
• D.top-down

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Your client Charlie is thinking about making a large investment into the Sentinel Canadian Equity Fund on December 15. The ex-dividend date for the mutual fund is December 20. What advice would you give Charlie to avoid the tax trap?

• A.Purchase the mutual fund after the ex-dividend date of December 20.
• B.Make the purchase on December 15 but choose to reinvest the distributions.
• C.Make the purchase on December 15 but choose to receive the distributions in cash.
• D.Purchase the mutual fund before the ex-dividend date of December 20.

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Jasmine purchases a 1-year, $10,000 face value strip bond for $9,600. At maturity, when Jasmine receives
$10,000, which of the following statements is CORRECT?

• A.Jasmine realizes a taxable dividend of $400.
• B.Jasmine realizes interest income of $400.
• C.Jasmine realizes a capital dividend of S400.
• D.Jasmine realizes a taxable capital gain of $400.

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Bernadette has a high-paying job and is in the top tax bracket. She recently received a payment of $5 million upon the settlement of her uncle's estate. Bernadette would like to invest her inheritance in financial products that would not only grow her money but is also income tax friendly.
Which of the following would provide the most favourable tax treatment?

• A.Dividends received from a large foreign corporation.
• B.Coupon payments from Government of Canada bonds.
• C.Capital gains from a large Canadian corporation.
• D.Eligible dividends from a publicly-listed Canadian corporation

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Jehona is a Dealing Representative with Vista Wealth Investments Inc., a mutual fund dealer in Ontario and Nova Scotia. Jehona has reviewed her client Sokol's account and wants to adjust the holdings and re-balance the portfolio. Which of the following statements about Jehona's permitted activities is CORRECT?

• A.If Sokol has signed a Limited Authorization Form, Jehona can process the trades in the account without Sokol's pre-approval.
• B.If Jehona wants to execute trades for Sokol's account, Sokol must provide his specific authorization before the trades are entered.
• C.If Sokol has given Jehona discretionary trading authority, Jehona can process trades in the account without Sokol's pre-approval.
• D.If Jehona wants to execute the trades without Sokol's pre-approval, Sokol must first appoint Jehona as his Power of Attorney.

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