CIFC Pdf Format & CIFC Certification Exam Infor
CIFC Pdf Format & CIFC Certification Exam Infor
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Tags: CIFC Pdf Format, CIFC Certification Exam Infor, CIFC Practice Test Pdf, Exam CIFC Pass Guide, CIFC Accurate Study Material
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No doubt the IFSE Institute CIFC certification exam is one of the most difficult TorrentExam certification exams in the modern TorrentExam world. This CIFC exam always gives a tough time to their candidates. The TorrentExam understands this challenge and offers real, valid, and top-notch IFSE Institute CIFC Exam Dumps in three different formats. All these three CIFC exam questions formats are easy to use and compatible with all devices, operating systems, and web browsers.
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CIFC Certification Exam Infor, CIFC Practice Test Pdf
The main benefit of IFSE Institute CIFC exam dumps in hand experience in technical subjects is that you shall know its core points. You don't have to just note the points and try remembering each. You shall know the step-wise process of how you can execute a procedure and not skip any CIFC point. Experience gives you a clear insight into everything you study for your IFSE Institute certification exam. So, when you get the Canadian Investment Funds Course Exam CIFC exam dumps for the exam, make sure that you get in hand experience with all the technical concepts.
IFSE Institute Canadian Investment Funds Course Exam Sample Questions (Q167-Q172):
NEW QUESTION # 167
Sean purchases 500 units of Penn Canadian Equity Fund when the net asset value per unit (NAVPU) is
$16.70. On December 15, the mutual fund's NAVPU is $21. On December 16, the mutual fund declares a distribution of $1.25 per unit. Sean's distribution is immediately reinvested and he purchases additional units of the mutual fund.
Which of the following statements about the effect of the distribution is correct?
- A. After the distribution. Sean will have J&625 in cash and JB8.350 worth of the Penn Canadian Equity Fund.
- B. The NAVPU of the mutual fund does not change after the distribution since Sean reinvests his distribution and purchases additional units.
- C. The total value of Sean's mutual fund holdings after the distribution and reinvestment is $9,875.
- D. Sean's distribution is reinvested at a NAVPU of $19.75 and he receives approximately 31.65 additional units.
Answer: D
Explanation:
Explanation
Sean's distribution is reinvested at a NAVPU of $19.75 and he receives approximately 31.65 additional units.
When a mutual fund declares a distribution, it reduces its NAVPU by the amount of the distribution per unit.
In this case, the NAVPU drops from $21 to $19.75 after the distribution of $1.25 per unit. Sean's distribution is $625 ($1.25 x 500 units), which he reinvests in the mutual fund at the new NAVPU of $19.75. He receives
additional units. The total value of Sean's mutual fund holdings after the distribution and reinvestment is (500+31.65)*19.75=$10,500
, not $9,875. The NAVPU of the mutual fund does change after the distribution, regardless of whether Sean reinvests his distribution or not. References: [Unit 7: Mutual Funds Administration]
NEW QUESTION # 168
One of your clients, Rakesh, had a portfolio composed of 60% ABC Equity Fund and 40% ABC Bond Fund.
Since equities were performing much better than fixed income, he had increased his holdings in ABC Equity Fund to 70% and had reduced his holding in ABC Bond Fund to 30% of his portfolio.
After benefitting the growth in his ABC Equity Fund for over 2 years, Rakesh is uncomfortable with this heavy exposure to equity funds and decides to rebalance his portfolio back to 60% of ABC Equity Fund and
40% of ABC Bond Fund.
He instructs you to switch 10% of the portfolio from the ABC Equity Fund to the ABC Bond Fund.
Which of the following statements is CORRECT?
- A. Rakesh will not be subjected to a switch fee if his original units were purchased with a sales charge.
- B. Rakesh will not be subjected to a switch fee if his equity fund is a no-load fund.
- C. Rakesh will not be subjected to a switch fee if his equity fund is a low-load fund.
- D. Rakesh will not be subjected to a switch fee if it is outlined in the prospectus.
Answer: D
Explanation:
Explanation
Rakesh will not be subjected to a switch fee if it is outlined in the prospectus. A switch fee is a charge that may apply when an investor switches from one fund to another within the same fund family. The prospectus is the legal document that provides information about the fund, including its fees and charges. If the prospectus states that there is no switch fee or that there are certain conditions under which the switch fee is waived, then Rakesh will not have to pay a switch fee. The type of fund (no-load, low-load, or sales charge) does not determine whether there is a switch fee or not, as different fund families may have different policies regarding switch fees. References: Mutual Fund Fees, Prospectus
NEW QUESTION # 169
Which among the following BEST describes a company's income statement?
- A. It shows the amount of profit that is reinvested in the company in the form of retained earnings.
- B. It shows the amount of capital contributed to the company by its shareholders or owners.
- C. It shows the earnings and expenses of a business over a period of time.
- D. It provides a snapshot of a company's financial position at a specific point in time
Answer: C
NEW QUESTION # 170
When you buy a put option, which of the following is TRUE?
- A. You have the obligation to sell a set number of shares at a set price.
- B. You have the right to purchase a set number of shares at a set price.
- C. You have the right to sell a set number of shares at a set price.
- D. You have the obligation to buy a set number of shares at a set price.
Answer: C
Explanation:
Explanation
A put option is a contract that gives the buyer the right, but not the obligation, to sell a set number of shares of an underlying asset at a set price within a specified time frame. The buyer of a put option expects the price of the underlying asset to fall below the strike price before the expiration date. Therefore, A is the correct answer.
References: Put Option: What It Is, How It Works, and How to Trade Them, Put: What It Is and How It Works in Investing, With Examples, Put Options: Definition, Overview, and Example
NEW QUESTION # 171
Danny is a Dealing Representative for Everbright Investments. He met with his client Adele, who has
$1,000,000 to invest. During their meeting Danny determines that Adele has a high-risk profile. In addition, he learns that she has an excellent understanding of equities and how volatile they can be. Danny is considering recommending growth funds specifically, and making a recommendation from the following investment options:
Based on the information provided, which mutual fund should Danny recommend?
- A. DEF European Equity Fund.
- B. Invest equally in all 3 funds.
- C. LMN Asia Pacific Equity Fund.
- D. ABC Global Equity Fund.
Answer: B
Explanation:
Explanation
Adele has a high-risk profile and an excellent understanding of equities. Therefore, it would be appropriate for Danny to recommend growth funds. However, since Adele has $1,000,000 to invest, it would be prudent to diversify her investments and invest equally in all 3 funds. This way, she can benefit from the exposure to different regions and sectors, and reduce the impact of market fluctuations on her portfolio. Based on the table, all 3 funds have the same 5-year annualized returns net of MER, which is 15%. However, they have different MERs and Sharpe ratios. The MER is the fee charged by the fund manager for managing the fund, and the Sharpe ratio is a measure of risk-adjusted return. A lower MER means a lower cost for the investor, and a higher Sharpe ratio means a higher return per unit of risk. Therefore, investing equally in all 3 funds would allow Adele to achieve a balanced trade-off between cost and performance. References:
* Canadian Investment Funds Course (CIFC) Study Guide, Chapter 4: Mutual Funds, Section 4.2: Types of Mutual Funds, page 4-6
* Canadian Investment Funds Course (CIFC) Study Guide, Chapter 5: Fixed-Income Securities, Section
5.5: Risk-Return Trade-Offs, page 5-14
* Sharpe Ratio Definition - Investopedia
NEW QUESTION # 172
......
One of the biggest highlights of the Canadian Investment Funds Course Exam prep torrent is the availability of three versions: PDF, app/online, and software/pc, each with its own advantages: The PDF version of CIFC Exam Torrent has a free demo available for download. You can print exam materials out and read it just like you read a paper. The online version of CIFC test guide is based on web browser usage design and can be used by any browser device. At the same time, the first time it is opened on the Internet, it can be used offline next time. You can practice anytime, anywhere. The Canadian Investment Funds Course Exam software supports the MS operating system and can simulate the real test environment. The contents of the three versions are the same. Each of them neither limits the number of devices used or the number of users at the same time. You can choose according to your needs.
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