Free Access IFSEInstitute.CIFC.v2025-02-26.q117 Practice Test (Page 20)

Question 91

Darryl has a diversified investment portfolio of mutual funds in a non-registered account with Investwell Mutual Funds, a mutual fund dealer. Darryl's diversified portfolio is composed of 3 mutual funds. Each mutual fund is currently worth about $100,000. The ABC Canadian Equity Fund has a total return of 6%, the DEF Bond Fund has a total return of 8% and GHI Global Equity Fund has a total return of 10%. Darryl wants to make an in-kind contribution to his registered retirement savings plan (RRSP) account. He has unused RRSP contribution room of $60,000.
From a tax-efficient viewpoint, which funds contribute in-kind to his RRSP account?

A.Move $20,000 from each of the three funds to the RRSP.

B.Move the GHI Global Equity Fund to the RRSP

C.Move the DEF Bond Fund to the RRSP.

D.Move the ABC Canadian Equity Fund to the RRSP.

Question 92

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.

Question 93

With respect to the tax treatment of dividends received from a taxable Canadian corporation, which of the following statements is CORRECT?

A.Dividends from both preferred and common shares of Canadian corporations receive preferential tax treatment.

B.Dividends are taxed the same way interest income is taxed.

C.Dividends from non-resident corporations receive preferential tax treatment.

D.Only 50% of dividend income is subject to tax.

Question 94

You have been researching Canadian equity mutual funds for a new client. You come across the following information.

What can you conclude from this information?

A.Chamberlain Equity Fund has lower volatility since its 5-year annualized return is higher.

B.Fontaine Equity Fund's higher MER contributes to its lower 5-year annualized return.

C.Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower.

D.Fontaine Equity Fund is a better fund because it has a higher quartile ranking.

Question 95

Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical that she has really benefitted. This year she plans to file her own taxes for the first time.
What would be useful for her to know?

A.Wilma's top marginal tax rate will be applied to every taxable dollar when her tax return is filed.

B.Wilma's marginal tax rate may be lowered when tax deductions are applied to her total income.

C.Wilma's tax deductions permit her to reduce her tax payable dollar-for-dollar.

D.Wilma's non-refundable tax credits may only reduce her taxable income dollar-for-dollar.

Other Version: 1058IFSEInstitute.CIFC.v2025-11-01.q102; 1289IFSEInstitute.CIFC.v2024-12-28.q114; 1863IFSEInstitute.CIFC.v2024-05-13.q115

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Question 91

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Question 93

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Question 95

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