1. Assume we are now in mid- or late July 2022. After conducting your own analysis, you have made a decision to buy shares of CSGP in August. However, your friend, Jaden who is a financial advisor for CSGP tells you that CSGP's earnings for the second quarter 2022 is higher than the analyst estimates. He suggests you to buy its shares immediately (i.e. in mid- or late July 2022) before this information is announced to the public (and price increases). Please state and explain which CFA Institute Code and Standards Jaden has breached.

2. After getting this information from Jaden, you refuse to take a position in the stock today and decide to continue to wait until August to buy it. What is the best terminology to describe your behaviour? Please use the best behavioural terminologies covered in the lectures and also explain your answers. (3 marks)

3. Please treat part (c) as an independent question. Assume you have lost money from your investment in CSGP in August 2022. You now decide to invest your fund in a different stock. You have been monitoring the price and return movement of stock XYZ (a random name) over the past few weeks. You find that XYZ has been falling by more than 3% and listed among the top declining stocks each trading day over the past one week. You decide to buy XYZ as you believe that there could be a very high chance for it to rebound and generate high return in subsequent periods.

What is the best terminology to describe your behaviour? Please use the best behavioural terminologies covered in the lectures and also explain your answers.

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1. Isabelle is a media consultant. She had been employed for many years by a Canadian Controlled Private Corporation (CCPC), Golden Inc., located in Ontario. Her salary and benefits for 2021 were $104,800. From this, Golden Inc. deducted CPP and El of $4,056, income tax of $27,248. On top of that, Golden Inc. paid the $100 premium for Isabelle's group term life insurance coverage of $60,000. 2. Isabelle also has the following income (losses) 2021: business loss of $5,000, eligible dividends of $25,000, non-eligible dividends of $20,500, and spousal support of $32,000. 3. Isabelle's employment income includes a stock option benefit of $20,000. The exercise price was higher than the share value at the date that the option was granted. In 2021, she sold the shares and realized a taxable capital gain of $10,400. 4. During 2021, Isabelle contributed $19,900, which is within her deduction limit for 2021, to her RRSP. 5. Isabelle paid an amount of $8,400 in tuition fees for her son Elie to attend a college degree program on a full-time basis for 8 months during 2021. $2,800 was paid in November 2020 for the Winter 2021 term and $5,600 was paid in July, 2021 for the Fall 2021 term. Elie's income for 2021 was N During 2021, Elie paid $4,100 medical expenses for dental services provided in a dentist's office. These expenses were not covered by Isabelle's health insurance plan. 7. Isabelle made charitable donations of $22,000 during 2021. 8. At the end of 2020 (previous year), Isabelle had unused non-capital losses of $2,100. 9. The following other payments occurred during 2021: (a) paid contributions to a registered federal political party of $1,700, and (b) paid interest on late payment of 2020 income tax of $700. BMT644NGG Case Study Assignment - Winter 2022 Page 2 of 3 EXHIBIT (II): JAXON FINANCIAL AND TAX INFORMATION 1. Jaxon is a professional information technology trainer. In June of 2021, Jaxon was hired by a Canadian industrial corporation, Longueuil Inc., to run training IT courses for their employees. Jaxon then visited USA to provide consulting services to Longueuil Inc. associated corporation from August 1st to August 12th, 2021. Jaxon recruited IT expert to assist him and complete the training courses he started before his trip to USA. 2. Jaxon earned $66,400 from June to December 2021 from the training courses delivered Longueuil Inc., and $33,200 from the IT consultation provided to Longueuil Inc. and corporati in Canada and USA. 3. Longueuil Inc. provided Jaxon with office space, internet and intranet access, vehicle with driver during the training courses delivered in Canada. Jaxon's personal laptop, website, training materials and collection of equipment's were used to prepare the t aining courses and consulting jobs. Jaxon was paid from June to December 2021 and was not provided any additional benefits or insurance by Longueuil Inc. 4. 5. to Jaxon also earned $11,200 from January to April 2021 while still living in France. Jaxon received $1,900 in foreign dividends in March 2021 and $2,700 in eligible dividends in October 2021 from Canadian corporation listed in Toronto Stock Exchange market (TSX). Jaxon's sister e-transferred $2,300 as a gift for Jaxon' 49th birthday in August 2021. 6. During 2021, Jaxon paid spousal support payments of $32,000 to his ex-wife (Isabelle). 1. Isabelle is a media consultant. She had been employed for many years by a Canadian Controlled Private Corporation (CCPC), Golden Inc., located in Ontario. Her salary and benefits for 2021 were $104,800. From this, Golden Inc. deducted CPP and El of $4,056, income tax of $27,248. On top of that, Golden Inc. paid the $100 premium for Isabelle's group term life insurance coverage of $60,000. 2. Isabelle also has the following income (losses) 2021: business loss of $5,000, eligible dividends of $25,000, non-eligible dividends of $20,500, and spousal support of $32,000. 3. Isabelle's employment income includes a stock option benefit of $20,000. The exercise price was higher than the share value at the date that the option was granted. In 2021, she sold the shares and realized a taxable capital gain of $10,400. 4. During 2021, Isabelle contributed $19,900, which is within her deduction limit for 2021, to her RRSP. 5. Isabelle paid an amount of $8,400 in tuition fees for her son Elie to attend a college degree program on a full-time basis for 8 months during 2021. $2,800 was paid in November 2020 for the Winter 2021 term and $5,600 was paid in July, 2021 for the Fall 2021 term. Elie's income for 2021 was N During 2021, Elie paid $4,100 medical expenses for dental services provided in a dentist's office. These expenses were not covered by Isabelle's health insurance plan. 7. Isabelle made charitable donations of $22,000 during 2021. 8. At the end of 2020 (previous year), Isabelle had unused non-capital losses of $2,100. 9. The following other payments occurred during 2021: (a) paid contributions to a registered federal political party of $1,700, and (b) paid interest on late payment of 2020 income tax of $700. BMT644NGG Case Study Assignment - Winter 2022 Page 2 of 3 EXHIBIT (II): JAXON FINANCIAL AND TAX INFORMATION 1. Jaxon is a professional information technology trainer. In June of 2021, Jaxon was hired by a Canadian industrial corporation, Longueuil Inc., to run training IT courses for their employees. Jaxon then visited USA to provide consulting services to Longueuil Inc. associated corporation from August 1st to August 12th, 2021. Jaxon recruited IT expert to assist him and complete the training courses he started before his trip to USA. 2. Jaxon earned $66,400 from June to December 2021 from the training courses delivered Longueuil Inc., and $33,200 from the IT consultation provided to Longueuil Inc. and corporati in Canada and USA. 3. Longueuil Inc. provided Jaxon with office space, internet and intranet access, vehicle with driver during the training courses delivered in Canada. Jaxon's personal laptop, website, training materials and collection of equipment's were used to prepare the t aining courses and consulting jobs. Jaxon was paid from June to December 2021 and was not provided any additional benefits or insurance by Longueuil Inc. 4. 5. to Jaxon also earned $11,200 from January to April 2021 while still living in France. Jaxon received $1,900 in foreign dividends in March 2021 and $2,700 in eligible dividends in October 2021 from Canadian corporation listed in Toronto Stock Exchange market (TSX). Jaxon's sister e-transferred $2,300 as a gift for Jaxon' 49th birthday in August 2021. 6. During 2021, Jaxon paid spousal support payments of $32,000 to his ex-wife (Isabelle).

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