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CRPC FINAL EXAM
ACTUAL NEWEST EXAM FORM A AND B
COMPLETE 500 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) ALREADY GRADED
A+
FORM A
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317
, 1.Assume a client and investment professional have worked
together for
several years. Recently, the client's personal and financial
circumstances have changed. According to the course
materials, what is the next asset management step that the
investment professional should take
A) analyze information
B) gather data
C) make and implement recommendations
D) monitor performance
Answer --B
When the client's circumstances change, the asset management process
goes back to the data gathering step in the process.
2.When the client's circumstances change, the asset
management process goes back to the data gathering step in
the process.:
A) realistic
B) clearly defined
C) long-term perspective
D) fluid
Answer --D
An investment policy provides guidelines that are standards to be
followed. If they are fluid, they are ever-changing and therefore would
be difficult to implement and would provide inconsistency in the
management of the portfolio.
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317
, 3.An investment policy provides guidelines that are standards
to be followed. If they are fluid, they are ever-changing and
therefore would be difficult to implement and would provide
inconsistency in the management of the port- folio.
A) tactical.
B) alpha.
C) core/satellite.
D) strategic.
Answer --B
Alpha is not an asset allocation strategy, but a way to measure a portfol
manager's return relative to the amount of risk that has been taken.
4. Assume the following asset classes have the correlations
to long-term government bonds shown below:
Treasury bills:.12 Gold:-.25 Large stocks:.22 Small stocks:.17
Which one of the following correctly states the impact of
diversification on long-term government bonds
A) Gold provides more diversification than large stocks.
B) Small stocks provide more diversification than Treasury bills.
C) Treasury bills provide more diversification than gold.
D) Large stocks provide more diversification than small stocks.
Answer --A
The asset with the lowest correlation provides the most diversification.
Therefore, gold provides more diversification than any of the other
assets.
5.Mary Goodwin's financial situation is as follows:
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317
, Cash/cash
equivalents$15,000
Short-term debts$8,000
Long-term
debts$133,000 Tax
expense$7,000
Auto note
payments$4,000
Invested
assets$60,000 Use
assets$188,000
What is her net worth
Answer $122,000
Assets = $263,000; liabilities = $141,000, so net worth is $122,000.
Taxes and auto note payments appear on the cash flow statement.
6.For the year ending December 31, XXXX, Bill Greer has the
following finan- cial information:
Salaries$70,000Auto
payments$5,000Insurance$3,800Food$8,000Cred- it card
balance$10,000Dividends$1,100Utilities$3,500Mortgage
pay-
ments$14,000Taxes$13,000Clothing$9,000Interest
income$2,100Checking
account$4,000Vacations$8,400Donations$5,800
What is the cash flow surplus or (deficit) for Bill
Answer $2,700
Income = $70,000 + $1,100 + $2,100 = $73,200. Expenses = $5,000 +
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317
CRPC FINAL EXAM
ACTUAL NEWEST EXAM FORM A AND B
COMPLETE 500 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) ALREADY GRADED
A+
FORM A
1/
317
, 1.Assume a client and investment professional have worked
together for
several years. Recently, the client's personal and financial
circumstances have changed. According to the course
materials, what is the next asset management step that the
investment professional should take
A) analyze information
B) gather data
C) make and implement recommendations
D) monitor performance
Answer --B
When the client's circumstances change, the asset management process
goes back to the data gathering step in the process.
2.When the client's circumstances change, the asset
management process goes back to the data gathering step in
the process.:
A) realistic
B) clearly defined
C) long-term perspective
D) fluid
Answer --D
An investment policy provides guidelines that are standards to be
followed. If they are fluid, they are ever-changing and therefore would
be difficult to implement and would provide inconsistency in the
management of the portfolio.
2/
317
, 3.An investment policy provides guidelines that are standards
to be followed. If they are fluid, they are ever-changing and
therefore would be difficult to implement and would provide
inconsistency in the management of the port- folio.
A) tactical.
B) alpha.
C) core/satellite.
D) strategic.
Answer --B
Alpha is not an asset allocation strategy, but a way to measure a portfol
manager's return relative to the amount of risk that has been taken.
4. Assume the following asset classes have the correlations
to long-term government bonds shown below:
Treasury bills:.12 Gold:-.25 Large stocks:.22 Small stocks:.17
Which one of the following correctly states the impact of
diversification on long-term government bonds
A) Gold provides more diversification than large stocks.
B) Small stocks provide more diversification than Treasury bills.
C) Treasury bills provide more diversification than gold.
D) Large stocks provide more diversification than small stocks.
Answer --A
The asset with the lowest correlation provides the most diversification.
Therefore, gold provides more diversification than any of the other
assets.
5.Mary Goodwin's financial situation is as follows:
3/
317
, Cash/cash
equivalents$15,000
Short-term debts$8,000
Long-term
debts$133,000 Tax
expense$7,000
Auto note
payments$4,000
Invested
assets$60,000 Use
assets$188,000
What is her net worth
Answer $122,000
Assets = $263,000; liabilities = $141,000, so net worth is $122,000.
Taxes and auto note payments appear on the cash flow statement.
6.For the year ending December 31, XXXX, Bill Greer has the
following finan- cial information:
Salaries$70,000Auto
payments$5,000Insurance$3,800Food$8,000Cred- it card
balance$10,000Dividends$1,100Utilities$3,500Mortgage
pay-
ments$14,000Taxes$13,000Clothing$9,000Interest
income$2,100Checking
account$4,000Vacations$8,400Donations$5,800
What is the cash flow surplus or (deficit) for Bill
Answer $2,700
Income = $70,000 + $1,100 + $2,100 = $73,200. Expenses = $5,000 +
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317
