Free CSI CSC2 Exam Questions

Question 1

Which of the following best characterizes the role of a buy-side portfolio manager compared to a trader?

A : The trader is responsible for client meetings and performance reports, while the portfolio manager handles day-to-day trading.

B : The portfolio manager executes trades while the trader develops the investment strategy.

C : The portfolio manager supervises the trader and is responsible for overall portfolio performance.

D : Both the portfolio manager and trader share equal responsibility for market positioning.

Answer: C

Question 2

Michael holds preferred shares of a company that comprises only a small portion of the total market value of preferred shares in Canada. What risk is Michael exposed to due to this market characteristic?

A : Extension risk.

B : Credit risk.

C : Liquidity risk.

D : Interest rate risk.

Answer: C

Question 3

In a scenario where interest rates are expected to decline, which of the following bonds would likely experience the greatest increase in price?

A : A bond with a short term to maturity and a low coupon rate.

B : A bond with a long term to maturity and a low coupon rate.

C : A bond with a long term to maturity and a high coupon rate.

D : A bond with a short term to maturity and a high coupon rate.

Answer: B

Question 4

Michael holds preferred shares of a company that comprises only a small portion of the total market value of preferred shares in Canada. What risk is Michael exposed to due to this market characteristic?

A : Extension risk.

B : Credit risk.

C : Liquidity risk.

D : Interest rate risk.

Answer: C

Question 5

Which type of commodity ETF would be most suitable for an investor seeking to closely match the spot price of gold?

A : Equity-based ETF.

B : Leveraged ETF.

C : Physical-based ETF.

D : Futures-based ETF.

Answer: C