Question 1

All of the following investments are recommended for tax qualified accounts except:

Accepted Answer

A)  This is recommended. Bonds create ordinary income. 
B)  This is recommended. Certificates of Deposit create ordinary income. 
C)  Stock. Creates long-term capital gain income; therefore best used in taxable accounts. 
D)  This is recommended. Treasury bills create ordinary income. 
A)  This is recommended. Bonds create ordinary income. 
B)  This is recommended. Certificates of Deposit create ordinary income. 
C)  Stock. Creates long-term capital gain income; therefore best used in taxable accounts. 
D)  This is recommended. Treasury bills create ordinary income. C

Question 2

All of the following are constraints in an IPS except:

Accepted Answer

A)  Acknowledgement. This is part of the IPS but it is not listed in constraints. 
B)  Liquidity. This is a constraint. 
C)  Taxes. This is a constraint. 
D)  Time horizon. This is a constraint. 
A)  Acknowledgement. This is part of the IPS but it is not listed in constraints. 
B)  Liquidity. This is a constraint. 
C)  Taxes. This is a constraint. 
D)  Time horizon. This is a constraint. A

Question 3

In those cases in which the personal financial planner isn't acting as the investment manager, the planner should review the IPS to ensure it is properly integrated with the client's:

Accepted Answer

A)  Investment plan. This is the responsibility of the investment manager. 
B)  Personal financial plan. 
C)  Risk management plan. This is part of the personal financial plan. 
D)  Tax plan. This is part of the personal financial plan. 
A)  Investment plan. This is the responsibility of the investment manager. 
B)  Personal financial plan. 
C)  Risk management plan. This is part of the personal financial plan. 
D)  Tax plan. This is part of the personal financial plan. B

Question 4

Where is the value of a personal residence contained in an IPS?

Accepted Answer

A)  Alternative investments. 
B)  General Financial Goals. 
C)  Other Assets. 
D)  Summary information. 
A)  Alternative investments. 
B)  General Financial Goals. 
C)  Other Assets. 
D)  Summary information.

Question 5

Constraints may affect the selection of:

Accepted Answer

A)  Goals are the basis for constraints. 
B)  Investment adviser. This is a distractor. 
C)  Securities. 
D)  Tax regime. This is a distractor. 
A)  Goals are the basis for constraints. 
B)  Investment adviser. This is a distractor. 
C)  Securities. 
D)  Tax regime. This is a distractor.

Question 6

The holding period return is the _____ return over the period from purchase to sale divided by the _____.

Accepted Answer

A)  Simple / price of the investment. This response is a distractor. 
B)  Simple / simple return. This response is a distractor. 
C)  Total / price of the investment. 
D)  Total / simple return. This response is a distractor. 
A)  Simple / price of the investment. This response is a distractor. 
B)  Simple / simple return. This response is a distractor. 
C)  Total / price of the investment. 
D)  Total / simple return. This response is a distractor.

Question 7

The _____ calculates the required interest rate for a taxable bond to provide the same after-tax return as a municipal bond.

Accepted Answer

A)  Holding period yield is a distractor. 
B)  Municipal bond yield is a distractor. 
C)  Standard yield is a distractor. 
D)  Taxable equivalent yield. 
A)  Holding period yield is a distractor. 
B)  Municipal bond yield is a distractor. 
C)  Standard yield is a distractor. 
D)  Taxable equivalent yield.

Question 8

Investment risk cannot be entirely eliminated through the diversification of an investment portfolio. This risk remaining after diversification is called:

Accepted Answer

A)  Diversifiable risk. 
B)  Standard deviation. 
C)  Systematic risk. 
D)  Total risk. 
A)  Diversifiable risk. 
B)  Standard deviation. 
C)  Systematic risk. 
D)  Total risk.

All of the following investments are recommended for tax qualified accounts except:

All of the following are constraints in an IPS except:

In those cases in which the personal financial planner isn't acting as the investment manager, the planner should review the IPS to ensure it is properly integrated with the client's:

Where is the value of a personal residence contained in an IPS?

Constraints may affect the selection of:

The holding period return is the _ return over the period from purchase to sale divided by the _.

The _____ calculates the required interest rate for a taxable bond to provide the same after-tax return as a municipal bond.

Investment risk cannot be entirely eliminated through the diversification of an investment portfolio. This risk remaining after diversification is called:

Personal Financial Planning

The Statement on Standards in Personal Financial Planning Services

Time Value of Money Concepts

Fundamentals of Personal Financial Planning

Estate Planning Basics

Charitable Gift Planning Basics

Principles of Risk and Insurance

Insurance Planning Basics, Part I

Insurance Planning Basics, Part II

Investment Basics

Investment Planning

Planning for Retirement and Financial Independence

Planning Vehicles for Retirement

Elder Planning Basics

Education Planning Basics

Applications in Estate Planning

Applications in Risk Management

Applications in Planning for Retirement

Applications in Employee Benefits Planning

Applications in Executive Compensation Planning

Applications in Personal Financial Planning in Special Circumstances

Delivery Models and Regulatory Issues

Filters

Exam 18: Applications in Investment Planning

All of the following investments are recommended for tax qualified accounts except:

All of the following are constraints in an IPS except:

In those cases in which the personal financial planner isn't acting as the investment manager, the planner should review the IPS to ensure it is properly integrated with the client's:

Where is the value of a personal residence contained in an IPS?

Constraints may affect the selection of:

The holding period return is the _____ return over the period from purchase to sale divided by the _____.

The _____ calculates the required interest rate for a taxable bond to provide the same after-tax return as a municipal bond.

Investment risk cannot be entirely eliminated through the diversification of an investment portfolio. This risk remaining after diversification is called:

Personal Financial Planning

The Statement on Standards in Personal Financial Planning Services

Time Value of Money Concepts

Fundamentals of Personal Financial Planning

Estate Planning Basics

Charitable Gift Planning Basics

Principles of Risk and Insurance

Insurance Planning Basics, Part I

Insurance Planning Basics, Part II

Investment Basics

Investment Planning

Planning for Retirement and Financial Independence

Planning Vehicles for Retirement

Elder Planning Basics

Education Planning Basics

Applications in Estate Planning

Applications in Risk Management

Applications in Planning for Retirement

Applications in Employee Benefits Planning

Applications in Executive Compensation Planning

Applications in Personal Financial Planning in Special Circumstances

Delivery Models and Regulatory Issues

Filters

The holding period return is the _ return over the period from purchase to sale divided by the _.