Which of the following statements is true when comparing fund of funds to traditional mutual funds?

• A.Fund of funds have higher fees than traditional mutual funds since there are two sets of management fees.
• B.Fund of funds have more asset class options available and lower fees than traditional mutual funds.
• C.Since fund of funds invest primarily outside Canada, they will have higher fees than traditional mutual funds.
• D.Fund of funds have more fee structure options available and lower fees than traditional mutual funds.

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Axis Wealth Management Inc. is a mutual fund dealer and member of the Mutual Fund Dealers Association of Canada (MFDA).
Indrek is a Branch Manager for the Guelph Branch and he is responsible for conducting suitability reviews in order to identify any unsuitable transactions or accounts. Which of the following accounts/transactions would be unsuitable?

• A.Gilles has invested in various mutual funds using a leverage strategy recommended by his Dealing Representative. Gilles is 82, he is retired, he needs regular income, and his risk profile is "low".
• B.Hundolf holds the Fortune Small Cap Equity Fund. Hundolf is fully employed, he is saving for his retirement in 18 years, his investment objective is "growth", and his risk profile is "medium-high".
• C.Megara bought a principal protected note (PPN) with a 7-year maturity. Megara wants principal protection and has a long-term investment time horizon (10+ years).
• D.Ulani is saving for the final payment she will owe on her pre-construction condominium. Ulani has invested in the Harbour Money Market Fund because she is seeking "safety".

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Zara buys a future contract with an underlying value of $100,000 worth of stocks. She is required to deposit
$1,750 of margin. Two weeks later, the underlying value of the stocks is $101,900. What is Zara's total return?

• A.$1,900 gain
• B.$3,650 gain
• C.$150 gain
• D.$950 gain

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What stage in the business cycle typically has increasing wages, rising inflation, rising interest rates with slowing sales, and decreasing business investment?

• A.Peak
• B.Expansion
• C.Trough
• D.Recovery

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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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