DOWNLOAD the newest DumpsReview CSC2 PDF dumps from Cloud Storage for free: https://drive.google.com/open?id=1rxeO2vb_g3nvCSc7eQNosljSN4BjWmnE
If you are interested in purchasing valid and professional test prep materials, our CSC2 exam questions will be our wise choice. To know our questions details and format we provide free PDF demo of our CSC2 exam questions for your reference before purchasing. You will have a better understanding for your products. You will find our CSC2 Exam Guide torrent is accurate and helpful and then you will purchase our CSC2 training braindump happily. We provide free demo of CSC2 study guide download before purchasing.
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
All these three Canadian Securities Course Exam2 (CSC2) exam questions formats contain the actual, updated, and error-free Canadian Securities Course Exam2 (CSC2) exam practice test questions that assist you in Canadian Securities Course Exam2 (CSC2) exam preparation. Finally, With the CSI CSC2 Exam Questions you will be ready to get success in the final CSI CSC2 certification exam. Please choose the best Canadian Securities Course Exam2 (CSC2) exam questions format and download it quickly and start this journey today.
NEW QUESTION # 148
What correlation would an investor need in order to eliminate the variability in the total returns between two stocks?
Answer: A
Explanation:
Correlation measures how two securities move in relation to each other. A correlation of +1.0 means the two stocks move perfectly together, so diversification provides no reduction in variability. A correlation of 0.0 means there is no consistent relationship, which reduces some portfolio risk but does not eliminate variability. A correlation of +0.5 still shows a positive relationship, so risk reduction is limited. A correlation of -1.0 means the two securities move perfectly opposite to each other. In theory, if two assets have perfectly negative correlation and are properly weighted, one asset's gain can offset the other asset's loss, eliminating variability in total returns. Therefore, -1.0 is the correct answer.
NEW QUESTION # 149
What is the measure of risk commonly applied to portfolio and to individual securities within that portfolio?
Answer: B
Explanation:
Standard deviation measures the dispersion or variability of returns around the mean of a portfolio or security
' s historical performance. It is a widely used statistical metric in finance to assess risk, as it captures the degree to which returns can deviate from their expected value. A high standard deviation indicates higher risk, reflecting greater volatility in returns, while a low standard deviation suggests more stable performance.
Beta measures market risk relative to a benchmark, correlation measures the relationship between securities, and alpha represents excess return above a benchmark. However, standard deviation is the most common measure of total risk applicable to portfolios and individual securities.
References:
CSC Volume 2 , Chapter 15: Introduction to the Portfolio Approach - Measuring Risk.
CSC Volume 2 , Chapter 16: The Portfolio Management Process - Risk Metrics.
NEW QUESTION # 150
Franco purchased an ETF in his non-registered account, and his total adjusted cost base in year 1 was
$30,000. The ETF distributes income each year. And this reinvested distribution total was $1,750. The ETF also distributes a return of capital of $850. What would Franco's total capital gain be if the sold the ETF for
$39,000?
Answer: B
Explanation:
To calculate Franco's total capital gain, we adjust the adjusted cost base (ACB) for reinvested distributions and return of capital (ROC).
* Initial ACB: $30,000.
* Add Reinvested Distributions: Reinvested distributions increase the ACB.30,000+1,750=31,75030,000
+ 1,750 = 31,75030,000+1,750=31,750
* Subtract Return of Capital: ROC reduces the ACB.31,750#850=30,90031,750 - 850 = 30,90031,750
#850=30,900
* Calculate the Capital Gain: Subtract the adjusted ACB from the sale price.39,000#30,900=8,10039,000
- 30,900 = 8,10039,000#30,900=8,100
* A. $1,250: Incorrect, likely a miscalculation of adjusted ACB.
* B. $8,100: Correct, based on accurate ACB adjustments and sale price.
* C. $6,400: Incorrect, ignores reinvested distributions.
* D. $9,000: Incorrect, ignores the impact of ROC adjustments on ACB.
Step-by-Step Calculation:Explanation of Options:References:
* CSC Volume 2, Chapter 19: Adjusted Cost Base Calculations, which explains the impact of reinvested distributions and ROC on capital gains.
NEW QUESTION # 151
What action must an investment advisor take when submitting a trade ticket for a short sale?
Answer: A
Explanation:
When submitting a trade ticket for a short sale, an investment advisor must mark the sell-order ticket as a short sale. This ensures compliance with regulatory requirements and informs the broker and exchange that the sale involves borrowed shares. Marking the order appropriately helps maintain transparency and enables monitoring for potential market manipulation.
* A. Verify the client can borrow the shares: The responsibility for ensuring share availability lies with the broker, not the advisor.
* C. Obtain minimum margin amount from client: This is done separately as part of the account setup and transaction process, not when submitting the trade ticket.
* D. Mark it as a margin order: Short sales involve margin, but the ticket must specifically indicate "short sale" rather than just "margin." Reference:CSC Volume 1, Chapter 9, "Short Selling - Trade Requirements" details the process and importance of marking short-sale tickets.
NEW QUESTION # 152
If an advisor is interested in a top-down, active equity management approach that is more aggressive and likely to be successful, which type of fund manager should he choose?
Answer: D
Explanation:
Sector rotation is a top-down active equity strategy. The manager begins with macroeconomic and industry analysis, then shifts portfolio exposure toward sectors expected to outperform at a particular stage of the business cycle. This approach is more active and aggressive than buy-and-hold investing, but it is generally more practical than pure market timing because the manager remains invested while changing sector weights. Market timing attempts to move in and out of the market altogether, which is highly difficult and often unreliable. Value-oriented management is usually bottom-up because it focuses on individual undervalued securities. Buy and hold is passive or low-turnover. Therefore, sector rotation best matches a top-down active approach.
NEW QUESTION # 153
......
Dear, hurry up to get the 100% pass CSC2 exam study dumps for your preparation. You will get original questions and verified answers for the CSI certification. After purchase of the CSC2 exam dumps, you can instant download the CSC2 practice torrent and start your study with no time wasted. The validity and useful CSC2 will clear your doubts which will be in the actual test. When you prepare well with our CSC2 pdf cram, the 100% pass will be easy thing.
Valid CSC2 Study Materials: https://www.dumpsreview.com/CSC2-exam-dumps-review.html
2026 Latest DumpsReview CSC2 PDF Dumps and CSC2 Exam Engine Free Share: https://drive.google.com/open?id=1rxeO2vb_g3nvCSc7eQNosljSN4BjWmnE