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Last Updated: Aug 26, 2026
No. of Questions: 122 Questions & Answers with Testing Engine
Download Limit: Unlimited
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| Section | Weight | Objectives |
|---|---|---|
| Equities | Approximately 10% | - Valuation concepts - Equity markets - Common and preferred shares |
| Managed Products and Other Investments | Approximately 13.3% | - Structured products - Mutual funds - Exchange-traded funds (ETFs) - Alternative investments |
| Investment Recommendations | Approximately 11.7% | - Recommendation development - Client communication - Product selection |
| Execution and Market Integrity | Approximately 5.8% | - Best execution - Order handling - Market integrity rules |
| Monitoring, Reporting and Maintaining Client Relationships | Approximately 5.8% | - Account monitoring - Ongoing suitability review - Performance reporting - Client relationship management |
| Securities Analysis | Approximately 11.7% | - Financial statement interpretation - Fundamental analysis - Technical analysis |
| Fixed Income | Approximately 8.3% | - Government and corporate bonds - Yield and pricing - Interest rate risk - Credit risk |
| Know-Your-Client (KYC) and Suitability | Approximately 22.5% | - Client profile collection and maintenance - Know-Your-Product (KYP) - Investment objectives and risk tolerance - Regulatory obligations - Suitability assessment |
| Portfolio Construction | Approximately 10.8% | - Diversification - Portfolio risk management - Asset allocation |
1. What is the expected return of a portfolio of investments if the risk-free rate is 5%, beta is 2.0, portfolio variance is 15% and market rate of return is 10%?
A) 15%
B) 12%
C) 10%
D) 20%
2. A pension portfolio must fund a known liability in seven years. The manager wants to reduce the effect that interest-rate changes could have on the portfolio's ability to meet that liability. Which fixed-income technique is most appropriate?
A) Immunization
B) Sector concentration
C) Market timing
D) Growth investing
3. A client is considering selling a significant portion of their holding in an S & P/TSX 60 Index exchange- traded fund (ETF) in order to invest in a successful company's stock. What is the most significant risk created by this action?
A) Reduction in potential returns against the market
B) Loss through the reversion to mean of the stock
C) Exposure to a single, potentially more volatile asset
D) The risk of being unable to claim for any capital losses
4. An investor, with a low risk tolerance and a short-term investment objective, approaches a Registered Representative (RR) for investment options. Which best fulfills suitability requirements linking this know- your-client (KYC) information to a recommendation?
A) Suggest an equity growth fund based on market trends and diversification potential
B) Recommend a balanced mutual fund to fulfill income needs and risk capacity
C) Advise an exchange-traded fund (ETF) after noting investment knowledge and growth interest
D) Propose a bond mutual fund to meet the time horizon and liquidity preference
5. A client wants to buy a recreational vehicle costing $25,000 in 3 years. They plan to make deposits of $630 at the start of each month into an investment account. What approximate annualised return is required to achieve their goal?
A) 6%
B) 8%
C) 10%
D) 4%
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: A |
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