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CSI CSC2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Portfolio Analysis18%- Portfolio construction
  • 1. Efficient frontier concepts
    • 2. Asset allocation strategies
      - Portfolio performance evaluation
      • 1. Benchmarking and attribution
        Topic 2: Canadian Taxation6%- Tax treatment of investments
        • 1. Registered accounts overview
          • 2. Capital gains vs income
            Topic 3: Managed Products- Exchange-Traded Funds (ETFs)
            • 1. Creation/redemption mechanism
              - Alternative Investments & Structured Products
              • 1. Structured notes basics
                • 2. Hedge funds and private assets overview
                  - Mutual Funds
                  • 1. Structure, fees, and pricing
                    Topic 4: Client Relationships & Accounts- Retail client advisory
                    • 1. Suitability and Know Your Client (KYC)
                      - Institutional client basics
                      • 1. Portfolio mandates and constraints
                        Topic 5: Investment Analysis18%- Time value of money and valuation principles
                        • 1. Present value and discounting concepts
                          • 2. Bond and equity valuation fundamentals
                            - Risk and return measurement
                            • 1. Expected return and variance
                              • 2. Diversification concepts

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                                CSI Canadian Securities Course Exam2 Sample Questions (Q185-Q190):

                                NEW QUESTION # 185
                                An advisor wants to explain the benefits of labour sponsored funds (LSVCC) to some of his clients. With which client should the advisor have this discussion?

                                Answer: D


                                NEW QUESTION # 186
                                What is a characteristic of provincial savings bonds?

                                Answer: D

                                Explanation:
                                Provincial savings bondsare available for purchase only during specific periods, often during annual campaigns. They are a secure investment option backed by the issuing provincial government and are available only to residents of the issuing province. They are not issued internationally and do not mature every six months.
                                References:
                                * Volume 1, Chapter 6:Fixed-Income Securities, section on "Provincial and Municipal Securities" discusses the features and issuance timing of provincial savings bonds.


                                NEW QUESTION # 187
                                What legal authority does the done receive under the protection mandate in Quebec?

                                Answer: A

                                Explanation:
                                In Quebec, the concept of a protection mandate (also known as a "mandate in case of incapacity") allows a person (the donor) to appoint someone (the mandatary or donee) to act on their behalf if they become unable to do so. The legal authority granted under this mandate encompasses decision-making and taking actions on behalf of the donor when they are incapacitated, ensuring their personal, medical, and financial interests are protected.
                                * Purpose: The primary purpose of the protection mandate is to prepare for a scenario where the donor loses their mental or physical capacity to manage their own affairs. It is a proactive measure for managing one's personal care and assets.
                                * Scope of Authority:
                                * The mandatary gains authority to make personal and financial decisions once the incapacity of the donor is confirmed, usually by a medical and legal process.
                                * The decisions may include managing bank accounts, paying bills, handling investments, and making healthcare decisions on behalf of the donor.
                                * Validation Requirement: The mandate only comes into effect after a formal validation process involving legal authorities to confirm the donor's incapacity.
                                * Legal Framework: The Quebec Civil Code governs the creation and execution of a protection mandate, ensuring the mandatary acts in the best interest of the incapacitated individual.
                                * The protection mandate specifically applies in cases where the donor is incapacitated. It grants the donee authority to manage aspects of the donor's life that they can no longer handle themselves.
                                * Options A, C, and D refer to different legal instruments or scenarios, such as probating a will (A), acting while the donor is capable (C), or estate administration after death (D), none of which are relevant under a protection mandate in Quebec.
                                Key Aspects of the Protection Mandate:Why Option B Is Correct:References from CSC Study Materials:
                                * Volume 2, Chapter 26: "Working with the Retail Client," Section on Estate Planning, Powers of Attorney, and Living Wills.


                                NEW QUESTION # 188
                                The XYZL mutual fund distributes realized capital gains of $1.50. What is the effect of this distribution?

                                Answer: D


                                NEW QUESTION # 189
                                An analyst compiles the following information for Theta Inc.

                                Based on the financial information provided, what will the dividend payout ratio be for Theta Inc.?

                                Answer: C


                                NEW QUESTION # 190
                                ......

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