One of your clients, Sheldon, is 65 years old. He has $30,000 to invest. He has a low risk profile, and an investment objective of receiving regular income. He has a time horizon of 5 years.
Based on Sheldon's risk profile and investment objective, which of the following investment recommendations is MOST appropriate for Sheldon?

• A.ABC common shares which had a 20% annual yield during the previous 5 years.
• B.3% Government of Canada Bonds at par, which have a maturity that coincides with Sheldon's time horizon.
• C.FEG Labour-Sponsored Fund which will give him a tax benefit.
• D.Debentures of XYZ Corporation will give Sheldon a regular income and an attractive yield.

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The owners of Underground Airways Ltd. want to take their privately owned corporation public through an initial public offering (IPO). They are speaking to a specialist from an investment dealer to determine whether it would be advisable to become listed on a stock exchange or the over-the-counter (OTC) market.
In comparing the two options, which of the following considerations is TRUE?

• A.A stock exchange listing would provide Underground with greater market exposure and public confidence than listing on the OTC market.
• B.Underground would still be directly involved in the trading of their shares on either market.
• C.Underground would be subject to less stringent listing requirements if they chose the stock exchange as compared to the OTC market.
• D.If Underground chose to list on the OTC market, there would be no secondary market available for investors.

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What information does Fund Facts provide to potential investors?

• A.What the mutual fund is currently investing in.
• B.How to calculate the taxes owed from investment income.
• C.The portfolio management strategy that is used.
• D.The remuneration paid to the Independent Review Committee.

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At the close of business, Great Lengths Equity Fund had total assets of $135 million and total liabilities of $10 million. They had 11 million units outstanding. In addition, their current assets totalled $13 million and current liabilities were $3 million. Which of the following statements regarding Great Lengths Equity Fund's net asset value per unit (NAVPU) is correct?

• A.The NAVPU is the total liabilities divided by the number of outstanding units.
• B.Current assets and current liabilities are used in the NAVPU calculation.
• C.There is not enough information available to calculate the NAVPU.
• D.Great Lengths Equity Fund's NAVPU is $11.36.

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Portia is a Dealing Representative with Highview Wealth Inc., a mutual fund dealer. Portia recommends the Stature Growth Fund to her client Clive. Which of the following CORRECTLY describes what Portia must do in order to satisfy her obligations under the Client Relationship Model (CRM) and Client Focused Reforms (CFR)?

• A.Portia must mark the trade as ^unsolicited" if Clive wants to proceed with the trade and it is not suitable for him.
• B.Portia must disclose the costs, expenses, and ongoing fees associated with the investment prior to the trade.
• C.Portia must provide Clive with the pre-trade disclosure to address any material conflicts of interest with the trade.
• D.Portia must calculate the net asset value per unit (NAVPU) and report it to Give in the trade confirmation.

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