Question 1

Which of the following details is explicitly required in the Annual Information Form (AIF) but not typically included in the Simplified Prospectus?

Options :

A : The management fees charged by the fund.

B : The investment objectives and strategies of the fund.

C : The tax status of the issuer.

D : The historical performance of the mutual fund.

Answer: C

Question 2

Which of the following is true about first-order risks in alternative strategy funds?

Options :

A : First-order risks are mainly associated with operational risks in alternative strategy funds.

B : First-order risks primarily affect relative value and event-driven strategies.

C : First-order risks include liquidity, leverage, and default risks.

D : First-order risks are systematic and cannot be mitigated through diversification.

Answer: D

Question 3

A stock has a five-week moving average calculated as follows:

Week 1: $16.00

Week 2: $17.00

Week 3: $18.00

Week 4: $19.00

Week 5: $20.00

What will be the five-week moving average at the end of Week 6 if the closing price for Week 6 is $21.00?

Options :

A : $19.00.

B : $19.60.

C : $18.40.

D : $20.00.

Answer: A

Question 4

Which of the following statements best describes the main advantage of investing in listed private equity companies over traditional private equity firms?

Options :

A : Listed private equity companies offer higher returns with lower risk due to public market regulation.

B : Listed private equity companies have greater access to inside information compared to traditional firms.

C : Listed private equity companies provide better liquidity and access to capital compared to traditional private equity firms.

D : Listed private equity companies are less regulated compared to traditional private equity firms.

Answer: C

Question 5

During the 2008–2009 subprime mortgage crisis, the stock market experienced a dramatic decline of approximately 50%. Investors reacted irrationally, and the market plummeted. According to technical analysis principles, what might have exacerbated this market behavior?

Options :

A : The collapse of weaker stocks dragging down the overall market.

B : A sudden improvement in economic conditions that led to overconfidence in the market.

C : Investors' reliance on fundamental analysis that failed to predict the crisis.

D : Sophisticated computerized trading strategies that amplified market volatility.

Answer: D

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