CEBS RPA ACTUAL EXAM GUIDE 2025: 150+ QUESTIONS AND
100% VERIFIED ANSWERS | GRADED A+ | GUARANTEED
PASS!!
Administrative issues in structuring investments provisions of a DC plan
- answer-Frequency of valuation. Frequency of change. Default provisions.
Negative elections. Employee communications.
Age-weighted profit sharing plan
- answer-traditional profit-sharing plan structure is the base plan for plan
qualification purposes. Age factors are used to allocate contributions more heavily
to older participants. Tend to appeal to smaller employers with older executive
staff and younger rank-and-file employees.
Alpha
- answer-The portfolio's amount of return, independent of the market
Amendment to plan document
- answer-A change or modification to the plan document that alters the operation of
the plan. Often driven by changes in law.
Annuity payment options
- answer-guarantee of lifetime income by the plan or the insurer
Approaches to converting from DB plan to Hybrid plan
- answer-Allow all employees to choose between the old and new plans. Allow
employees option to remain on old plan. Make adjustments to initial account
balances of the new plan. Make additional contributions to other employer-
sponsored plans.
Benefit statement guidelines under PPA
,- answer-DC plan with direct investments is once per quarter. DC plan without
direct investments is once per year. Active, vested participant in DB plan is once
every three years or annual notice describing availability of a benefit statement.
Benefits of a successful investment program for employee
- answer-1. Increased participation
2. Improved returns
3. Lower costs.
Benefits of a successful investment program for employer
- answer-1. Low-cost fees
2. Ease of administration
3. Flexibility to make needed changes in investment arrangements
4. Improved recognition of the company as a source of valuable benefits.
Benefits statement
- answer-A personal statement of benefits that translates benefits into dollar
amounts that is given to employees as part of a total rewards education and
communication effort. Provided upon request or at specific intervals.
Best Interest Contract Exemption
- answer-Advisors to employee benefit plans and IRAs must abide by the DOL's
newly adopted impartial conduct standards, and financial institutions must adopt
policies and procedures designed to ensure that their individual advisors adhere to
these standards.
Blue Chip Stock
- answer-Issued by major companies with long and unbroken records of earnings
and dividend payments. They should appeal primarily to pension plans seeking
safety and stability.
Bonds in pension porfolios
- answer-For pension plans with fixed dollar obligations that will be paid out
, several years in the future, purchase assets that will generate a cash flow similar to
the benefit payments.
The investment manager may purchase assets with a longer maturity than the
money market instruments described above.
Business risk
- answer-the prospect of the corporation issuing the security suffering a decline in
earnings power that would adversely affect its ability to pay interest, principal or
dividends.
Business risk
- answer-the risk of doing business in a particular industry or environment. The
possibility that a company might have a financial downturn.
Capital Asset Pricing Model
- answer-Uses standard statistical techniques simple linear regression to analyze
the relationship between the periodic returns of the portfolio and those of the
market.
Capital gain
- answer-An increase in price of an asset
Capital gain or loss
- answer-The change in value of the asset, either appreciation or depreciation
Cash balance plan
- answer-A defined benefit plan that defines the benefit in terms that are more
characteristic of a defined contribution plan. A cash balance plan defines the
promised benefit in terms of a stated account balance.
Caveats to performance measurement system
- answer-1. A hastily chosen system, poorly related to real needs, can rapidly
degenerate into a mechanistic, pointless exercise.
100% VERIFIED ANSWERS | GRADED A+ | GUARANTEED
PASS!!
Administrative issues in structuring investments provisions of a DC plan
- answer-Frequency of valuation. Frequency of change. Default provisions.
Negative elections. Employee communications.
Age-weighted profit sharing plan
- answer-traditional profit-sharing plan structure is the base plan for plan
qualification purposes. Age factors are used to allocate contributions more heavily
to older participants. Tend to appeal to smaller employers with older executive
staff and younger rank-and-file employees.
Alpha
- answer-The portfolio's amount of return, independent of the market
Amendment to plan document
- answer-A change or modification to the plan document that alters the operation of
the plan. Often driven by changes in law.
Annuity payment options
- answer-guarantee of lifetime income by the plan or the insurer
Approaches to converting from DB plan to Hybrid plan
- answer-Allow all employees to choose between the old and new plans. Allow
employees option to remain on old plan. Make adjustments to initial account
balances of the new plan. Make additional contributions to other employer-
sponsored plans.
Benefit statement guidelines under PPA
,- answer-DC plan with direct investments is once per quarter. DC plan without
direct investments is once per year. Active, vested participant in DB plan is once
every three years or annual notice describing availability of a benefit statement.
Benefits of a successful investment program for employee
- answer-1. Increased participation
2. Improved returns
3. Lower costs.
Benefits of a successful investment program for employer
- answer-1. Low-cost fees
2. Ease of administration
3. Flexibility to make needed changes in investment arrangements
4. Improved recognition of the company as a source of valuable benefits.
Benefits statement
- answer-A personal statement of benefits that translates benefits into dollar
amounts that is given to employees as part of a total rewards education and
communication effort. Provided upon request or at specific intervals.
Best Interest Contract Exemption
- answer-Advisors to employee benefit plans and IRAs must abide by the DOL's
newly adopted impartial conduct standards, and financial institutions must adopt
policies and procedures designed to ensure that their individual advisors adhere to
these standards.
Blue Chip Stock
- answer-Issued by major companies with long and unbroken records of earnings
and dividend payments. They should appeal primarily to pension plans seeking
safety and stability.
Bonds in pension porfolios
- answer-For pension plans with fixed dollar obligations that will be paid out
, several years in the future, purchase assets that will generate a cash flow similar to
the benefit payments.
The investment manager may purchase assets with a longer maturity than the
money market instruments described above.
Business risk
- answer-the prospect of the corporation issuing the security suffering a decline in
earnings power that would adversely affect its ability to pay interest, principal or
dividends.
Business risk
- answer-the risk of doing business in a particular industry or environment. The
possibility that a company might have a financial downturn.
Capital Asset Pricing Model
- answer-Uses standard statistical techniques simple linear regression to analyze
the relationship between the periodic returns of the portfolio and those of the
market.
Capital gain
- answer-An increase in price of an asset
Capital gain or loss
- answer-The change in value of the asset, either appreciation or depreciation
Cash balance plan
- answer-A defined benefit plan that defines the benefit in terms that are more
characteristic of a defined contribution plan. A cash balance plan defines the
promised benefit in terms of a stated account balance.
Caveats to performance measurement system
- answer-1. A hastily chosen system, poorly related to real needs, can rapidly
degenerate into a mechanistic, pointless exercise.
