Mark, a financial planner, is meeting his client Adam for the first time. From the conversation, Mark learned that Adam has some experience on trading stocks. Adam asked Mark to explain about efficient market theory that he overheard a colleague talking about a few days ago. How should Mark respond to Adam's question in simple terms?

• A. Past mistakes can be avoided by using the information to anticipate change.
• B. Stock prices reflect all publicly-available information.
• C. Market prices of stocks have no relation to past price behaviour.
• D. Investors react differently to information.

Keitaro, age 42, and Ruth, age 52, are married and have two children - Maximo, age 20, and Hannah, age 16, both from Keitaro's previous marriage. In the event Keitaro dies, he would like to minimize taxes, provide for Ruth for the remainder of her life, and then after her death leave the residual to his children. What estate planning strategy should his financial planner recommend to help Keitaro achieve his goal?

• A. Transfer his assets to a testamentary spousal trust through a will and name his children as income and capital beneficiaries.
• B. Transfer his assets to a testamentary spousal trust through a will and name his children as capital beneficiaries.
• C. Transfer his assets to an inter vivos spousal trust through a will and name his children as capital beneficiaries.
• D. Transfer his assets to an inter vivos spousal trust through a will and name his children as income and capital beneficiaries.

Francois and Brigitte are meeting with their financial planner, Robin. They would like to ensure that if one of them were to die suddenly that their mortgage would be paid in full. Their current mortgage has an outstanding balance of $400,000 with 10 years remaining. The couple are in good health and have a well- balanced financial plan that focuses on debt reduction and savings. Which type of insurance policy should Robin recommend to assist the couple in meeting their objective?

• A. Joint whole life last-to-die policy.
• B. Joint whole life first-to-die policy.
• C. Joint 10-year term last-to-die policy.
• D. Joint 10-year term first-to-die policy.

Demario, age 28, has just started his own law firm. He met with his financial planner, Ivy, and she told him that he needs insurance, but Ivy did not specify which type. Demario is single and owns his own home. At this point in his career, his greatest asset is his human capital. Which type of insurance should Ivy have specified to purchase in order for Demario to best protect this asset?

• A. Disability.
• B. Term Life.
• C. Extended health care.
• D. Critical Illness.