While assessing the suitability of an investment recommendation as a Dealing Representative, which statement applies to the "Client's Interest First" standard?

• A.Presenting a fund's historical investment performance to anticipate a mutual fund's future rate of return.
• B.Clarifying for clients the costs and fees associated with mutual funds and how they impact investment performance.
• C.The use of a risk-based approach when determining which mutual fund to recommend to the client.
• D.Accurately document Know Your Client information (KYC) so there is evidence to support a recommendation.

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What bias results in investors valuing an asset that they own over an asset that another individual owns?

• A.Representativeness
• B.Endowment
• C.Risk aversion
• D.Status Quo

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You are the portfolio manager for the ABC asset allocation fund. Interest rates are going up; the stock market has been very volatile recently and is forecast to continue that way for the next two quarters. What changes, if any, will you make to your current asset allocation of 50% bonds and 50% equities?

• A.None - the fund is balanced
• B.Increase the allocation to bonds because interest rates are rising
• C.Increase the allocation to equities to take advantage of the volatility
• D.Temporarily move a significant amount into money market securities

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Jack and Jill hold a mutual fund account as tenants in common. What conditions would apply to their account?
* Should either die, full ownership of the account would pass to the other
* Each would be the owner of 50% of the account's assets
* Either could issue trading instructions on all account assets
* Each would be required to provide KYC information

• A.2 and 4
• B.2 and 3
• C.1 and 4
• D.1 and 3

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Which of the following applies to a mutual fund trust?

• A.It has a board of directors and shareholders.
• B.It has unitholders.
• C.It is not efficient at passing through income to investors.
• D.It is always closed-end.

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