CSC2 CSI Canadian Securities Course Exam 2 exact Exam Questions

Canadian Securities Course Exam 2

Last Update 17 hours ago Total Questions : 185

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Question # 41

What is the key objective for investors in alternative strategy funds?

To match the performance of a reference index.

To maximize risk-adjusted returns.

To achieve absolute returns

To exceed the current rate of inflation.

Question # 42

What is typically discussed during the establishment of the client-advisor relationship step?

The client ' s investment goals.

The current financial and personal status.

By what means does the client prefer to communicate with the advisor.

What services will the advisor provide.

Question # 43

How do index-tracking ETFs differ from index mutual funds?

ETFs have higher tracking errors

Index mutual funds have higher implicit trading costs

ETFs have higher administrative costs of record-keeping

Index mutual funds only have initial investment and trading fees

Question # 44

Institutional clients tend to be more sophisticated than retail clients. What benefit does this translate into for CIRO dealer members?

They are free of fiduciary obligations to their clients.

They are subject to few, if any, investment restrictions.

They can organize their firms based specifically on client needs.

They are permitted to make trades on a discretionary basis for their clients.

Question # 45

For a market capitalization-weighted ETF focused on the S & P/TSX Composite Index, what is likely the greatest contributor to underperformance relative to the reference index?

Liquidity.

Fees.

Rebalancing.

Cash drag.

Question # 46

What is the objective of a relative value strategy?

To eliminate market risk by combining securities with perfect negative correlation

To assume a net long position by combining both long and short positions on a basket of securities

To exploit market price inefficiencies by simultaneously taking matched long and short positions

To take long positions in convertible bond securities paired with long positions in equities

Question # 47

Which statement best describes the Sharpe ratio?

It compares the return of the portfolio with the return of the market as a whole, relative to the portfolio ' s risk as measured by its standard deviation.

It compares the return of the portfolio with the riskless rate of return, relative to the portfolio ' s risk as measured by its standard deviation.

It compares the return of the portfolio with the return of the market as a whole, relative to the portfolio ' s risk as measured by its beta.

It compares the return of the portfolio with the riskless rate of return, relative to the market ' s risk as measured by its standard deviation.

Question # 48

When a company issues a number of common shares, some of which are held by institutional investors, what are the institutional investors ' shares known as?

Market capitalization shares.

Outstanding shares.

issued shares

Public float shares.