CPFA License Exam Certified Plan Fiduciary Actual
Exam 2026/2027 Newest With Complete Questions
And Correct Detailed Answers| Latest Version!
All of the following are characteristics of target date funds,
EXCEPT:
A) They are designed so that the equity portion decreases
as the fund nears a specified date.
B) They are diversified to minimize the risk of large losses.
C) They can be used to reduce fiduciary liability under the
qualified default investment alternative rules.
,D) They require less fiduciary oversight than other types of
funds. - ANSWER-D) They require less fiduciary oversight
than other types of funds.
All of the following are characteristics of asset allocation
funds, EXCEPT:
A) They are generally designed to be the sole investment
holding for a participant.
B) They provide guaranteed retirement income for
participants.
C) They have exposure to multiple asset classes.
,D) They are designed to meet a specific objective. -
ANSWER-B) They provide guaranteed retirement income
for participants.
The JKL Company recently established a 401(k) Plan and
hired Larry as its plan advisor. The Plan Committee, with
Larry's assistance, has just finalized the investment policy
statement. The next step is to start the investment
selection process. Larry is planning to discuss all the
following issues regarding investment selection, EXCEPT:
A) The investment line-up should be diversified.
B) Self-directed brokerage accounts may be offered only
to investment savvy participants.
, C) Investment fees must be reasonable.
D) The investments selected should represent asset
classes across a risk/reward spectrum. - ANSWER-B)
Self-directed brokerage accounts may be offered only to
investment savvy participants.
A new client with a 401(k) plan wants to add funds to
enhance the diversification of the Plan. Which of the
following tasks should be completed first when considering
adding funds to the plan?
A) Prepare the new 404(a)(5) disclosures.
B) Establish dates for employee meetings to explain the
investment changes.
Exam 2026/2027 Newest With Complete Questions
And Correct Detailed Answers| Latest Version!
All of the following are characteristics of target date funds,
EXCEPT:
A) They are designed so that the equity portion decreases
as the fund nears a specified date.
B) They are diversified to minimize the risk of large losses.
C) They can be used to reduce fiduciary liability under the
qualified default investment alternative rules.
,D) They require less fiduciary oversight than other types of
funds. - ANSWER-D) They require less fiduciary oversight
than other types of funds.
All of the following are characteristics of asset allocation
funds, EXCEPT:
A) They are generally designed to be the sole investment
holding for a participant.
B) They provide guaranteed retirement income for
participants.
C) They have exposure to multiple asset classes.
,D) They are designed to meet a specific objective. -
ANSWER-B) They provide guaranteed retirement income
for participants.
The JKL Company recently established a 401(k) Plan and
hired Larry as its plan advisor. The Plan Committee, with
Larry's assistance, has just finalized the investment policy
statement. The next step is to start the investment
selection process. Larry is planning to discuss all the
following issues regarding investment selection, EXCEPT:
A) The investment line-up should be diversified.
B) Self-directed brokerage accounts may be offered only
to investment savvy participants.
, C) Investment fees must be reasonable.
D) The investments selected should represent asset
classes across a risk/reward spectrum. - ANSWER-B)
Self-directed brokerage accounts may be offered only to
investment savvy participants.
A new client with a 401(k) plan wants to add funds to
enhance the diversification of the Plan. Which of the
following tasks should be completed first when considering
adding funds to the plan?
A) Prepare the new 404(a)(5) disclosures.
B) Establish dates for employee meetings to explain the
investment changes.
