Happy Lunar New Year!

Did you know that the Canadian Securities Course is increasingly popular in China? And yes, with our online quizzes we can help you pass it in China too!

And for fun, here are some facts on the year of the horse: http://www.theguardian.com/lifeandstyle/2014/jan/31/eight-things-you-probably-didnt-know-about-year-of-horse

Looking for help passing CSC and CPH exams?

Foran Financial Sample Exams are available online. You probably already know that practicing sample exam questions is an effective way of mastering the material. Practicing helps you:

  • Secure your understanding of the material
  • Identify areas of weakness
  • Gage your readiness
  • Manage your time

Foran Financial Online Exams test from the largest, most in depth question bank available for CSC1, CSC2, and CPH. Questions are developed by our securities expert, Ron Foran, who has been helping student pass these exams for over 27 years. Our questions are convenient and affordable (only $50 for 3 exams). A perfect companion to any study regime. For more information and to see what our students are saying about these products, visit our website or give me a call to 416 947 1922. See a sample of our online quizzes below and try some free samples of Foran securities questions in the CSC or CPH categories of our blog. CSC1 sample question CSC1 Sample q answer

New Online Products

Foran is making your exam preparation convenient and accessible with our online sample exam questions for the Canadian Securities Course (CSC), Conduct and Practices Course (CPH) and New Entrants Course (NEC).

Take the CSC1 for example. With a question bank of over 1400 questions, Foran has a comprehensive CSC preparation tool available in an easy to use format.

You get 3 sample exams comprising 100 multiple-choice questions each. We have weighted the questions based on the CSI’s recommended mark distribution for the exam. The questions are taken randomly from a large question bank. Every try generates a unique test for an in depth assessment of your proficiency.

Our tutorial style quizzes give you an immediate answer after each completed question, providing a rationale to help strengthen your understanding.

Our student feedback says it all:

“The online exams were hugely helpful!! They were tough (maybe even tougher) than the exam itself so it raised the bar and really helped a lot!”

If you want more information on our online exams for the CSC, CPH and NEC please visit our website or give us a call at 1 (800) 565-0374.

 

Coming soon:     Foran Case Study Challenge for FPE1® and FPE2®    Examination Candidates will soon be available online

And for those of you preparing to write the 2013 FPE1 exam, don’t forget that we have an online FPE1 sample exam available until December 1st.

CSC2 Exam Prep Questions

Questions

1. Calculate the offering price of a mutual fund with a $23.20 NAVPS and a front end sales commission of 4%.

a)         $22.30
b)         $23.67
c)         $24.12
d)         $24.17

 

2. Ricardo purchases a segregated fund for $75,000 with a 100% guarantee after the legal minimum maturity payment period. I f after 10 years the fund is worth $65,000, which statement is not correct?

a)         the maturity guarantee is $10,000
b)         there is a zero capital gain overall
c)         there is a zero taxable capital gain overall
d)         there is a $10,000 capital loss overall

Answers

 

1. d) $24.17

Offering Price    = NAVPS / (100% – Sales Commission)

= $23.20 / (100% – 4%)
= $23.20/ 0.96
= $24.17

Chapter 18: Mutual Funds, Structure and Regulations

 

2. d) There is not a $10,000 capital loss overall.

There is zero capital loss overall. The segregated fund is redeemed for $65,000, which is a $10,000 capital loss. However the maturity guarantee is $10,000 which is a capital gain. Overall the capital loss is zero.

Chapter 20: Segregated Funds and Other Insurance Products

 

For more Canadian Securities Course questions check out our CSC Quiz Books and Online Test Products.

Keep up to date on our courses and products by liking us on Facebook and following our Twitter Feed.

CSC2 Exam Prep Questions

Questions

Chapter 15: Introduction to the Portfolio Approach
12. What is not correct about correlation in respect to two stocks in a portfolio?

a)         If two stocks move perfectly in tandem the correlation is +1.00; and the stocks move perfectly together

b)         If the correlation between two stocks is -1.0, and if the standard deviations are equal, the two stocks move perfectly in the opposite direction. When one stock is falling below its average return, the other stock is rising above its average return; and the investor locks in the average return.

c)         If the movement between two stocks is random, the correlation will approximate zero.

d)         The best correlation to reduce the risk of owning two stocks is zero.

Chapter 13: Fundamental and Technical Analysis
25. Technical analysis is based on three assumptions which include ?

I.          history repeats itself
II.        stock prices are random
III.       when a trend exists, it tends to persist for relatively long periods of time
IV.       all public information is built into the price of a stock
V.        valuation models like the DDM will result in superior stock selection.

a)         I, II, III
b)         III, IV, V
c)         I, III, V
d)         I, III, IV

Answers

12. d)   The best correlation to reduce the risk of owning two stocks is -1.0; not zero.

25. d)   I, III, IV

For more Canadian Securities Course questions check out our CSC Quiz Books and Online Test Products.

Keep up to date on our courses and products by liking us on Facebook and following our Twitter Feed.

CSC2 Exam Prep Questions

Questions

1. What is correct about standard deviation?

I. Standard deviation is the measure of risk commonly applied to portfolios and to individual securities within that portfolio.

II. Standard deviation is the square of variance.

III. The past performance or historical returns of securities is used to determine a range of possible future outcomes. The more volatile the price of a security has been in the past, the larger the range of possible future outcomes.

IV. The standard deviation, expressed as a percentage, gives the investor an indication of the risk associated with an individual security or a portfolio.

V. The greater the standard deviation, the greater the risk.

a) I, II, III
b) III, IV, V
c) I, III, IV, V
d) I, II, III, IV, V

 

2. What is correct about a structured product?

I. A structured product is a passive investment vehicle financially engineered to provide a specific risk and return characteristic.

II. The value of a structured product tracks the return of a reference security known as an underlying asset. Underlying assets can consist of a single security, a basket of securities, foreign currencies, commodities or an index.

III. Examples of underlying assets include mortgage loans, credit card receivables, car loans, equity indexes or home equity loans.

IV. Once assembled, a structured product is designed to have higher risk than its constituent underlying asset, yet provide lower risk adjusted returns than conventional investments. Investors buy a share of the total pool of underlying assets.

a) I, II
b) III, IV
c) I, II, III
d) I, II, III, IV

Answers

1. c) I, III, IV, V
Statement II, should read “the standard deviation is the square root of variance”.
Chapter 15: Introduction to the Portfolio Approach

 2. c) I, II, III
Chapter 17: Evolution of Managed and Structured Products

For more Canadian Securities Course questions check out our CSC Quiz Books and Online Test Products.

Keep up to date on our courses and products by liking us on Facebook and following our Twitter Feed.

CSC2 Exam Prep Questions

Questions

 

Chapter 24: Structured Products
1. What are characteristics of principal-protected notes (PPN s)?

I. In Canada, a principal-protected note (PPN) is a debt-like instrument with a maturity date. The issuer agrees to repay investors the amount originally invested (the principal); and possibly a return based on an underlying asset or assets.

II. The return of a PPN is tied to the performance of an underlying asset, such as a portfolio of mutual funds or common stocks, a market index, a hedge fund or a portfolio of hedge funds.

III. PPNs guarantee only the return of the principal.

IV. PPNs issued by chartered banks, are protected by the Canada Deposit Insurance Corporation (CDIC).

a) I, II
b) I, II, III
c) II, III, IV
d) I, II, III, IV

Chapter 26: Working with the Retail Client
2. The financial planning pyramid deals with ?

I. Security
II. Independence
III. Leadership
IV. Investments
V. Evolution

a) I, II, III
b) III, IV, V
c) I, II, IV
d) I, II, V

Answers

 

1. b) I, II, III

Statement IV is incorrect. PPNs issued by banks are not backed by the CDIC.

2. c) I, II, IV

For more Canadian Securities Course questions check out our CSC Quiz Books and Online Test Products.
Keep up to date on our courses and products by liking us on Facebook and following our Twitter Feed.

CSC2 Exam Prep Questions

Questions

Chapter 13: Fundamental and Technical Analysis
1. Companies choose to enter an industry depending on the amount of capital required, opportunities to achieve economies of scale, the existence of established distribution  channels, regulatory factors and product differences. According to Porter, these issues are reflected in what competitive force ?

a) degree of competition between existing firms
b) substitute products
c) ease of entry for new competitors
d) power of buyers

Chapter 14: Company Analysis
2. This is probably the most widely used of all financial ratios because it combines all the other ratios into one figure. It represents the ultimate evaluation of a company and its shares by the investing public. This is the ?

a) earnings per common share
b) net profit margin
c) price-earnings ratio
d) common dividend yield

Answers

1. c) ease of entry for new competitors

2. c) price-earnings ratio

For more Canadian Securities Course questions check out our CSC Quiz Books and Online Test Products.

Keep up to date on our courses and products by liking us on Facebook and following our Twitter Feed.

CSC2 Exam Prep Questions

Questions

 

Chapter 21: Hedge Funds

1. The Progressive hedge fund manager purchases an ABC $1,000 face value 5% convertible bond, maturing in 12 years. T he bond is convertible into 50 common shares for the next 7 years. The common shares are trading at $22 per share and the ABC bond is trading at its conversion value. The hedge fund manager buys the convertible bond and shorts 50 shares of ABC at $22 per share. It is one year later and the ABC stock is trading at $8 per share and the ABC convertible bond is trading at $90. T he hedge fund manager covers the short sale and sells the convertible bond. What is the profit or loss on the strategy, excluding commissions and the interest income received on the bond?

a) $500 gain

b) $700 gain

c) $200 loss

d) $ 310 loss

 

Chapter 26: Working with the Retail Client

2. Using the financial planning pyramid, fixed income securities would be considered what type of investment?

a) aggressive

b) conservative

c) moderate

d) very aggressive

 

Answers

 

1. a) $500 gain

Loss on the Bond: ($200)

• The convertible bond was purchased at its conversion value which equals:

Market Price of Common Shares × No. of common shares on conversion = $1,100 [50 shares × $22]

• The convertible bond was sold for $900 [$90 means $90 per $100 face value or 90% of face value or $900 [$1,000 face value × 0.90]

Loss on the Bond = $200 [$900 sales proceeds – $1,100 purchase cost]

Gain on Short Sale = Short Sale Proceeds $1,100 [50 shares × $22]

less Cost to Repurchase Shares – 400 [50 shares × $8]

= Gain on Short Sale $700

Overall Gain or Loss = Gain on Short Sale – Loss on the Bond

= $700 – $200

= $500 Gain

 

2. b) conservative

 

For more Canadian Securities Course questions check out our CSC Quiz Books and Online Test Products.

Keep up to date on our courses and products by liking us on Facebook and following our Twitter Feed.

 

 

Canadian Securities Course v. 2 Exam Prep

Questions

Chapter 26: Working with the Retail Client

1. All methods of soliciting and conducting business by an IA must meet public respect and confidence. This reflects the IA ’s ?

a)            duty of care

b)            duty to act professionally

c)            fiduciary duty

d)            agency duty

Chapter 27: Working with the Institutional Client

2. What is not correct about a corporate treasury department?

a)            A corporate treasury department is responsible for managing the firm’s financial assets in support of the company’s business activities.

b)            A corporate treasury department typically handles risk management functions, along with other prescribed duties, on behalf of the corporation

c)            Corporate treasury duties range from general management of a company’s finances to decisions on funding and risk management.

d)            A corporate treasury department engages in activities that may require the services of a broker dealer. The broker dealer may hedge the company’s currency risk of a foreign subsidiary, help the company obtain inexpensive capital by selling equity or debt in a domestic or foreign market or provide several other services.

 

Answers

1. b) duty to act professionally

2. b) The corporate treasury department does not handle risk management. This is a separate

department.

For more Canadian Securities Course questions check out our CSC Quiz Books and Online Test Products.

Keep up to date on our courses and products by liking us on Facebook and following our Twitter Feed.