CSI Updated IFC Exam Questions and Answers by ronald

 Dollar-cost averaging is a strategy that involves investing equal amounts of money at regular intervals, regardless of the price of the security. By using dollar-cost averaging, investors may lower their average cost per share and reduce the impact of volatility on their portfolios. However, this strategy does not guarantee a better purchase price than making a lump-sum purchase. In this case, David got his 500 units at a higher price than the lump sum price he would have paid. His average cost per unit was $14.65, while the lump sum price was $14.10. Therefore, D is the correct answer. References: What Is Dollar-Cost Averaging?, What Is Dollar Cost Averaging?, Dollar-Cost Averaging: Definition and Examples

Ethics in the securities industry are defined as moral principles that go beyond simple compliance with the law, incorporating both the letter and the spirit of the law .

Compliance = following rules only.

Fiduciary duty = acting in the best interest of clients.

Professional responsibility = broader conduct obligations.

The correct term here is Ethical conduct.

The S&P 500 is the appropriate benchmark for researching the largest listed public companies in the US market. The feedback from the document provides:

"Index: S&P 500, Description: The 500 largest publicly held companies that trade on U.S. markets, Performance uses: U.S. equity funds."

Cavalry can place a temporary hold on Darsha’s account to temporarily disallow the redemption if they have reasonable grounds to believe that Darsha is being financially exploited or that she lacks mental capacity to make financial decisions. This is in accordance with the guidance issued by the Mutual Fund Dealers Association of Canada (MFDA) on how to deal with vulnerable clients. A temporary hold can be placed for up to 15 business days, which can be extended for another 15 business days if necessary. During this time, Cavalry must conduct an internal review of the matter and contact Darsha and any trusted contact person or legal representative to resolve the situation. Cavalry cannot place a permanent hold on Darsha’s account without her consent or a court order. Cavalry is not required to place a temporary hold on Darsha’s account, but it is an option available to them to protect their client’s interests. References: What We Heard Report: Financial Crimes and Harms Against Seniors, MFDA Bulletin #0859-P - Guidance on Vulnerable Clients