Unused RRSP contribution room is the amount of RRSP contributions that you did not deduct in previous years and are available to deduct in the current year. Unused RRSP contribution room can be carried forward to future years indefinitely, until you use it up or reach the age of 71. You can find your unused RRSP contribution room on your notice of assessment or by logging into your Canada Revenue Agency account. References: What to do with unused RRSP, PRPP or SPP contributions

Comprehensive and Detailed Explanation From Exact Extract:

A rational investor seeks to maximize return for a given level of risk or minimize risk for a given level of return. The feedback from the document states:

"Given a choice between two investments with the same amount of risk, a rational investor would always take the security with the higher return. Given two investments with the same expected return, the investor would always choose the security with the lower risk. Investors are risk averse, but not all to the same degree. Each investor has a different risk profile."

Comprehensive and Detailed Explanation From Exact Extract:

Given Jeff’s low wealth level and strong emotional biases, the advisor should moderate and adapt to these emotional biases to ensure suitable investment recommendations. The feedback from the document states:

"Jeff has a relatively low level of wealth and strong emotional biases; that’s why the advisor should moderate and adapt to Jeff’s emotional biases."

Retractable preferred shares are a type of preferred stock that lets the issuer force the redemption of the shares at a set price and time. The issuer can pay cash or common shares to the retractable preferred shareholders.

References = Retractable Preferred Shares: What it is, How it Works, Example, What are Retractable Preferred Shares? Definition, And How Does it Work? - CFAJournal, Retractable Preferred Shares | Example | Feature - Accountinguide

A simplified prospectus is a legal document that provides essential information about a mutual fund, such as its investment objectives, strategies, risks, fees, performance, and distribution policy. A simplified prospectus also contains information about the fund manager, the dealer, and the rights of investors. A fund facts is a summary document that highlights the key information from the simplified prospectus in a concise and easy-to-read format. A fund facts is delivered to investors before or at the time of purchase of a mutual fund12

One of the information that can be found from a simplified prospectus instead of fund facts is the investment strategies that are being used or proposed to be used by the mutual fund. The investment strategies describe how the fund manager intends to achieve the fund’s investment objectives, such as the types of securities, markets, sectors, or styles that the fund will invest in, the asset allocation or diversification policy, the use of derivatives or leverage, or the criteria for selecting or selling securities. The investment strategies may also include any restrictions or limitations that the fund must follow, such as the minimum or maximum exposure to certain securities, markets, or sectors, or the adherence to any ethical, environmental, social, or governance (ESG) principles. The investment strategies provide investors with a detailed and comprehensive understanding of how the fund operates and what risks it may entail34

The other options are not correct, as they can be found in both the simplified prospectus and the fund facts. The costs associated with mutual fund investing include the sales charges, trailing commissions, management fees, operating expenses, and taxes that investors may have to pay when they buy, hold, or sell a mutual fund. These costs are disclosed in both documents, as they affect the returns and performance of the fund12 A summary of the top 10 investment holdings shows the largest positions that the fund holds in its portfolio, such as the names and percentages of the securities, markets, or sectors that the fund invests in. This summary gives investors a snapshot of the fund’s composition and diversification, and it is updated regularly in both documents12 Investor rights regarding cancelling an order refer to the right of withdrawal and the right of rescission that investors have when they purchase a mutual fund. The right of withdrawal allows investors to cancel their purchase within two business days of receiving the fund facts or the confirmation of purchase, and receive a refund of the purchase price or the market value of the fund, whichever is less. The right of rescission allows investors to cancel their purchase within 48 hours of receiving the confirmation of purchase, if they did not receive the fund facts before or at the time of purchase, and receive a refund of the purchase price or the market value of the fund, whichever is less. These rights are explained in both documents, as they protect the interests of investors12

References = Canadian Investment Funds Course, Unit 6: Mutual Funds, Lesson 4: Mutual Fund Disclosure Documents, Section 6.4.1: Simplified Prospectus 1; Canadian Investment Funds Course, Unit 6: Mutual Funds, Lesson 4: Mutual Fund Disclosure Documents, Section 6.4.2: Fund Facts 2; CIFC prepkit, Chapter 6: Mutual Funds, Question 6.4.1 3; CIFC prepkit, Chapter 6: Mutual Funds, Question 6.4.2 4

The Client Relationship Model (CRM) and Client Focused Reforms (CFR) are regulatory initiatives that aim to enhance the relationship between registered firms and their clients by imposing higher standards of conduct and disclosure. One of the obligations under CRM and CFR is to provide clients with information about the costs, expenses, and ongoing fees associated with an investment prior to executing a trade. This includes disclosing the management expense ratio (MER), sales charges, deferred sales charges (DSC), switch fees, short-term trading fees, and trailer fees of a mutual fund. This information helps clients understand the impact of fees on their returns and compare different investment options. Therefore, option C is correct regarding what Portia must do in order to satisfy her obligations under CRM and CFR. The other options are not correct. Option A is false because Portia does not need to calculate the net asset value per unit (NAVPU) and report it to Clive in the trade confirmation; rather, the NAVPU is determined by the mutual fund manager and reported by the mutual fund dealer in the trade confirmation. Option B is false because Portia must not mark the trade as unsolicited if Clive wants to proceed with the trade and it is not suitable for him; rather, Portia must act in Clive’s best interest and advise him against making an unsuitable trade or decline to execute it. Option D is false because Portia does not need to provide Clive with the pre-trade disclosure to address any material conflicts of interest with the trade; rather, Portia must disclose any material conflicts of interest with the client relationship as part of the relationship disclosure information (RDI) that is provided at account opening and updated as necessary. References: [Client Relationship Model - Phase 2 (CRM2) | GetSmarterAboutMoney.ca], [Client Focused Reforms | GetSmarterAboutMoney.ca], [Client Focused Reforms - FAQs | IFIC]

Jasmine realizes interest income of $400 because she bought a strip bond, which is a bond that has its principal and coupon payments separated and sold individually. Jasmine bought the principal-stripped bond, also known as a zero-coupon bond, which pays no interest until maturity. The difference between the purchase price and the face value at maturity is considered interest income and is taxable in the year it is received. References: Strip Bonds: Definition, How They Work, Returns, and Example