FREE CSC Knowledge Questions and Answers

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When consumers resume spending and the bond market rallies, with prices rising as rates decline.

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A $1,000,000 portfolio with a dynamic asset allocation strategy and a strategic asset mix of 10% cash, 30% fixed income, and 60% equity has undergone a composition change to 10% cash, 20% fixed income, and 70% equity due to exceptional equity performance. What kind of transactions would have to happen for the portfolio to return to its strategic asset mix?

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If a portfolio deviates from its strategic asset mix because of market or other factors, a dynamic asset allocation strategy will bring it back in line. In this case, the manager would have to sell $100,000 worth of stocks and utilize the proceeds to buy $100,000 worth of fixed income. A portfolio containing $100,000 in cash, $300,000 in fixed income, and $600,000 in stocks would be the outcome of this.

A particular kind of savings plan with a one-year or longer guarantee and a favorable interest rate. After the first three months, they pay interest until the end of the month before they are cashed and can be cashed whenever they choose.

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Which trading system is intended to guard against human mistake in tasks related to record-keeping, settlement, and trading securities?

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The straight-through processing system's goal is to eliminate human error in the processes of trading securities, settling disputes, and maintaining records. It guarantees that the execution of security transactions is limited to those that comply with all relevant laws, rules, and investment recommendations.

A federal Crown Corporation that offers deposit insurance against loss in the event that a member institution fails, up to $100,000 per depositor.

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For $960, an investor buys a $1,000 five-year bond. The investor discovers that the bond is now trading at $980 at the conclusion of the calendar year. What tax ramifications does this change in value have for the investor?

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The difference between the proceeds of the disposition and the adjusted cost base (book value) of the security is the only factor used to determine a capital gain or loss. This calculation is done only at the time of disposition. Unlike interest income from a bond, you are not required to record capital gains or losses on an annual basis.

An important indicator to provide investors with information on is the cash flow to total debt outstanding ratio.

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Typically, short-term loans have to be paid back or rolled over within a year. Sinking fund difficulties associated with corporate debt typically necessitate yearly cash outlays. Therefore, a company's operating cash flow needs to be sufficient to cover these obligations.

The performance of a benchmark index was 8% with 6% volatility in the previous year. Which fund is probably run by an indexer in disguise?

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A closet indexer adheres closely to the market weightings by industry sector, nation or area, or average market capitalization rather than precisely replicating an index or benchmark. Closet indexers are among the active managers. The degree to which their return, volatility, and average market capitalization match the index can be used to determine this. The return and volatility of Fund B in this case are most similar to those of the benchmark index.

Putting a cost on the B/S and classifying it as an asset rather than an expense to allow it to be stretched over multiple accounting periods.

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To take advantage of currency possibilities, the managers of ABC Hedge Fund employ unique trading strategies. Which kind of hedge fund is most likely the ABC hedge fund?

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To take advantage of currency possibilities, the managers of ABC Hedge Fund employ unique trading strategies. Which kind of hedge fund is most likely the ABC hedge fund?

Typically, a head-and-shoulders bottom indicates:

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A significant reversal in stock prices can occur as either a significant advance or decrease, and it typically corresponds with a head-and-shoulders pattern on charts. This is an often noticed pattern that can happen at both market peaks and troughs.

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