Reference no: EM132908100

Problem 1: Which of the following activities would normally fall within the scope of technical analysis? (select all that apply)

A. The use of a security's past trading prices.
B. The use of historical price patterns for a security.
C. The evaluation of corporate cash flow and earnings statements.
D. The calculation of a stock's intrinsic value.

Problem 2: The concept of portfolio insurance involves:

A. An equal proportion of risk-free and riskier assets with the objective of maximizing investment return.
B. The design of a portfolio to avoid losses and to secure minimum favourable returns.
C. The overweighting of risk-free assets to risk-free portfolio.
D. The purchase of asset insurance to compensate the investor if significant losses are realized within the portfolio.

Problem 3: Tye owns a portfolio of mutual funds that utilize a reinvestment program where all income is used to purchase additional units of the fund and the income is added to the ACB of the funds. The reinvested income:

A. Can be treated as deferred income for up to three years.
B. Is not subject to tax because it is not received directly as cash.
C. Is treated as taxable income to the unit holder in the year the allocation is made.
D. Will be taxed when the units are eventually disposed of.