CANNON CTFA ACTUAL TEST PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ Common Stockholders Answer: Who benefits the most in a highly
leveraged company during periods of rising profits
◉ Federal level ONLY. EXEMPT from State and Local level. Answer:
What level are Treasury Securities taxed at?
◉ Municipal Bonds Answer: What can Pooled Income Funds NOT
invest in
◉ Bonds Answer: A widow, 75 years old, with no heirs wants stable
income with little risk should have a portfolio constructed mostly of
what?
◉ Common Stock Answer: What has provided the highest return
over the past 50 years
◉ Growth Stocks Answer: Exhibit high PE Ratios, Low Dividend
Yields, high price volatility
◉ Food, beverage, toiletries Answer: Defensive stocks include
, ◉ The companies Board of Directors Answer: Who determines and
declares a companies dividends
◉ Corporate Bonds Answer: What pays a high yield compared to
Treasury or Agency Bonds?
◉ appreciating; lower Answer: When exchange rates of foreign
currencies increases it means the foreign currency is _____________and
the cost of US made goods in that country will be _____________
◉ Money-Market Funds Answer: Possesses HIGH liquidity and HIGH
marketability VERY low risk investment option?
◉ Gold and Real Estate Answer: What is a good inflation hedge in a
portfolio
◉ preferred stock Answer: stock that entitles the holder to a fixed
dividend, whose dividend payment takes priority over that of
common-stock dividends. No voting rights.
◉ systemic risk Answer: Type of Risk that CANNOT be diversified
away
QUESTIONS WITH SOLUTIONS GRADED A+
◉ Common Stockholders Answer: Who benefits the most in a highly
leveraged company during periods of rising profits
◉ Federal level ONLY. EXEMPT from State and Local level. Answer:
What level are Treasury Securities taxed at?
◉ Municipal Bonds Answer: What can Pooled Income Funds NOT
invest in
◉ Bonds Answer: A widow, 75 years old, with no heirs wants stable
income with little risk should have a portfolio constructed mostly of
what?
◉ Common Stock Answer: What has provided the highest return
over the past 50 years
◉ Growth Stocks Answer: Exhibit high PE Ratios, Low Dividend
Yields, high price volatility
◉ Food, beverage, toiletries Answer: Defensive stocks include
, ◉ The companies Board of Directors Answer: Who determines and
declares a companies dividends
◉ Corporate Bonds Answer: What pays a high yield compared to
Treasury or Agency Bonds?
◉ appreciating; lower Answer: When exchange rates of foreign
currencies increases it means the foreign currency is _____________and
the cost of US made goods in that country will be _____________
◉ Money-Market Funds Answer: Possesses HIGH liquidity and HIGH
marketability VERY low risk investment option?
◉ Gold and Real Estate Answer: What is a good inflation hedge in a
portfolio
◉ preferred stock Answer: stock that entitles the holder to a fixed
dividend, whose dividend payment takes priority over that of
common-stock dividends. No voting rights.
◉ systemic risk Answer: Type of Risk that CANNOT be diversified
away
