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| Section | Weight | Objectives |
|---|---|---|
| Portfolio Construction and Managed Accounts | 10–14% | - Registered account types - Asset allocation and risk metrics |
| Structured Products | 10–14% | - Applicable regulatory rules - Product types and risk profiles |
| Trade Execution and Market Integrity | 8–12% | - Prohibited practices and compliance - Order routing and best execution |
| Mutual Funds and ETFs | 20–24% | - Fund structures and disclosure documents - Suitability and sales obligations |
| Client Monitoring and Relationship Management | 8–12% | - Complaint handling procedures - Performance reporting and CRM2 |
| Equities | 18–22% | - Equity product features and risks - Trading mechanics and market structure |
| KYC and Suitability | 20–24% | - Suitability determination and documentation - Client information collection and updates |
| Fixed Income | 18–22% | - GICs and other retail fixed-income products - Bond characteristics and pricing |
1. Which of the following factors is commonly targeted by smart beta strategies?
A) Earnings growth
B) Market capitalization
C) Price volatility
D) Value
2. How are cash flows from investing activities typically classified in the statement of cash flows?
A) They indicate the company's debt servicing
B) They include purchases and sales of long-term assets
C) They indicate the issuance of new shares or bonds
D) They include cash transactions from core operations
3. An investor is analyzing the MSCI World Index and the S & P 500 Index. What is a key difference between them?
A) The MSCI World Index only includes emerging markets, while the S & P 500 focuses on developed markets
B) The MSCI World Index is price-weighted, while the S & P 500 is an equal-weighted index
C) The MSCI World Index includes global stocks, while the S & P 500 focuses only on U.S. stocks
D) The MSCI World Index tracks large-cap stocks, while the S & P 500 tracks small-cap stocks
4. An Investment Dealer executes a client's trade at a worse price than what was available on another exchange, despite having access to the better option. Which CIRO rule has been violated?
A) Insider trading
B) Wash trading
C) Front running
D) Best execution
5. If the beta of a company is 1.8, what can be said with certainty about its risk profile?
A) It has low systematic risk
B) It has low unsystematic risk
C) It has high unsystematic risk
D) It has high systematic risk
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: D |
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