Solomon is a Dealing Representative who is excited about a new equity fund his dealer recently approved. He thinks investors will be attracted to the fund's historical performance. He has a prospective new client, Madira, who is 25 years old. Madira has invested in mutual funds before, but not with Solomon's dealer. She has made an appointment to open a new RRSP with Solomon's firm.
What does Solomon need to do to make this a suitable recommendation?

• A.Rely on the risk rating of the mutual fund when offering an investment solution.
• B.Identify how the proposed investment is in alignment with the investor's profile and holdings.
• C.Show from past fund performance, that mutual fund costs are not important if there are high returns.
• D.Match the past rates of return of the mutual fund with what is the anticipated rate of return.

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Hamid, the portfolio manager of the Trabant Canadian Equity Fund is deciding on some new investments. He has identified a retirement residence company as well as a discount clothing retailer that both seem to have good prospects and appear undervalued. What investment approach is Hamid using?

• A.top-down
• B.technical investing
• C.growth at a reasonable price
• D.bottom-up

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

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Jabir begins the registration process with his new dealer Prosper Wealth Inc. Jabir is excited about his new career and eager to start calling clients, opening new accounts, and selling investments. Which of the following CORRECTLY describes when Jabir will be eligible to open new client accounts and sell investments?

• A.Upon employment with the dealer
• B.Upon registration application by the dealer
• C.Upon passing the proficiency course
• D.Upon formal confirmation from the regulator

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

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