You wish to sell a perpetual preferred share with a par value of $25.00, which pays a quarterly dividend of
$0.25. If other preferred shares of similar quality are currently yielding 3.5%, what price should you expect to receive for your share?

• A.$30.35
• B.$25.00
• C.$28.57
• D.$14.29

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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.ABC Global Equity Fund.
• B.DEF European Equity Fund.
• C.LMN Asia Pacific Equity Fund.
• D.Invest equally in all 3 funds.

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Marta is turning 71 years old this year. She will have to convert her registered retirement savings plan (RRSP) to a registered retirement income fund (RRIF). Which of the following statements is TRUE?

• A.She will be able to continue contributing to her RRIF and be subject to the same annual limits as her RRSP.
• B.When she converts her RRSP to a RRIF, she will incur a tax liability.
• C.She will be subject to annual maximum withdrawal limits.
• D.She does not have to withdraw the minimum amount this year.

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Which of the following Dealing Representatives has CORRECTLY fulfilled their suitability obligation?

• A.Clarence determines that the Absolute Alternative Fund is suitable for all of his clients. Clarence believes that all investors need alternative funds in order to be properly diversified.
• B.Kiri recommends the Conservative Bond Fund to his client, Myrtle. The fund generates income and Myrtle's investment objective is "income" on her Know Your Client (KYC) form.
• C.Li Ming recommends the Venturex Labour-Sponsored Fund to her client, Park. While Park has low tolerance and capacity for risk, Li Ming provides detailed disclosure which explains the fund's risks.
• D.Roderik determines that the model portfolio he has developed will be suitable for all of his clients.Roderik has included investments with both income and growth to appeal to all investors.

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One of your clients, Sheldon, is 65 years old. He has $30,000 to invest. He has a low risk profile, and an investment objective of receiving regular income. He has a time horizon of 5 years.
Based on Sheldon's risk profile and investment objective, which of the following investment recommendations is MOST appropriate for Sheldon?

• A.ABC common shares which had a 20% annual yield during the previous 5 years.
• B.3% Government of Canada Bonds at par, which have a maturity that coincides with Sheldon's time horizon.
• C.FEG Labour-Sponsored Fund which will give him a tax benefit.
• D.Debentures of XYZ Corporation will give Sheldon a regular income and an attractive yield.

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