Pierre wants to discuss the merits of a specific mutual fund with his Dealing Representative, Simone. There are no trailer fees associated with this fund. Simone is familiar with the mutual fund that Pierre is referring to, which is not offered by her dealer. They schedule an appointment to further discuss his investment portfolio.
Which behaviour from Simone is ethical?

• A.While comparing Fund Facts of the different mutual funds, Simone points out that not only are the fund management expenses different but so are the investor profiles for each fund.
• B.Simone's ability to keep her knowledge current on competitors' investment offerings shows that she is putting her client's interest first.
• C.When comparing her dealer's own mutual funds to the one Pierre discovered, Simone emphasizes the importance of similar net rates of return and minimizes the significance of management expense ratios (MERs).
• D.Knowing Pierre does not like that her dealer's funds have trailer fees, she chooses not to discuss the relationship between trailer fees and MER while making comparisons.

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Pierre buys a call option on a stock. What is the implication of this transaction?

• A.Pierre has the right to sell the stock if he exercises the option.
• B.Pierre is obligated to sell the stock if the option is exercised.
• C.Pierre has the right to buy the stock if he exercises the option.
• D.Pierre is obligated to buy the stock if the option is exercised.

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Which of the following characteristics about mortgage mutual funds is CORRECT?

• A.typically monthly distributions of interest
• B.if interest rates fall, the mutual fund's net asset value per unit (NAVPU) will decline
• C.suitable only for high risk investors
• D.risk-free where the mortgages are National Housing Act (NHA) insured

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Your client, Kimberly has investments in both registered and non-registered plans. Which of the following investment strategies is best suited for Kimberly from a tax perspective?

• A.Include investments paying capital gains in the registered plan and foreign pay investments in the non-registered plan.
• B.Include domestic pay assets in the registered plan and foreign pay assets in the non-registered plan.
• C.Include interest paying investments in the registered plan and dividend paying investments in the non-registered plan.
• D.Include dividend paying investments in the registered plan and interest paying investments in the non-registered plan.

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Derek submits an order to sell 300 units of the Evergreen Canadian Mortgage Fund at 8:00 p.m. EST on Friday, January 6. His proceeds will be based on the net asset value per unit (NAVPU) for which day (assume no holidays)?

• A.Friday, January 6
• B.Monday, January 9
• C.Tuesday, January 10
• D.Wednesday, January 11

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