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CSI Investment Funds in Canada (IFC) Exam IFC Question # 61 Topic 7 Discussion

CSI Investment Funds in Canada (IFC) Exam IFC Question # 61 Topic 7 Discussion

IFC Exam Topic 7 Question 61 Discussion:
Question #: 61
Topic #: 7

Cristina wants to add a mutual fund to her portfolio offering dividend income. She is considering either a preferred dividend fund or a standard equity fund. What is an important difference for Cristina to consider when comparing these two types of funds?


A.

The standard equity fund would track an index and have less volatility.


B.

A preferred dividend fund takes a more passive approach to investing.


C.

The standard equity funds are willing to put capital at substantially greater risk.


D.

A preferred dividend fund would offer more opportunity for capital gains and appreciation.


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