CFP EXAM 2026/2027 UPDATE | VERIFIED QUESTIONS & ANSWERS
100% CORRECT | GRADED A+
Lisa purchased 500 shares of XYZ stock trading at $40 per share, with an initial margin requirement
of 60% and a maintenance margin of 30%. At What price would Lisa receive a margin call?
A. $20
B. $22.86
C. $57.14
D. $80.00 - ANSWER B. $22.86
40*(1-.60)/ 1-.30= 22.86
Lareen purchased 1000 shares of CWC stock for $80 per share with an initial margin requirement of
65% and a maintenance margin of 40%. Assume the stock price falls to $30 per share, how much
equity must Laureen contribute?
A. $2/share
B. $8/share
C. $10/share
D. $12/share - ANSWER C. $10 per a share
Required Equity Actual Equity
Price: 30 Price: 30
Main. Margin *.40 Debt: (28)
Required Equity 12 Actual: $2
Debt = $80* (1-.65) = $28
Required - Actual = contribution amount 12-2=10
, MSFT declared a dividend payable to shareholders on the record date of Wed. May 15th. Which is
the last possible date an investor could purchase the stock and still receive the dividend?
A. purchased on May 13th
B. purchased on May 12th
C. purchased on May 11th
D. purchased on May 10th - ANSWER D. May 10th.
Ex dividend date would be Monday the 13th, and in order to receive the dividend the investor would
have to purchase prior to the ex-dividend date. Since the 13th is a Monday the last possible date an
investor could purchase the stock and still receive the dividend would be Friday the 10th.
If June 4 is the date of record, when must Joe purchase the stock in order to receive the dividend?
A. June 1
B. June 2
C. June 3
D. June 4
E. May 31 - ANSWER A. June 1st
Date of record minus 3 days. When purchasing a stock you have to buy before the ex dividend date
to receive the dividend.
You are interviewing James Smith, CFP to manage your investments and provide financial guidance in
other areas of your life. James states that his investment philosophy is as a contrarian; he buys
securities that are losing favor and sells securities that are gaining favor. You review his previous track
record, which is about equal with the market. His investments are typically in a security that has lost
at least 10% for its most recent high. What type of bias is James exhibiting?
A. Anchoring
B. Herding
C. Overconfidence
100% CORRECT | GRADED A+
Lisa purchased 500 shares of XYZ stock trading at $40 per share, with an initial margin requirement
of 60% and a maintenance margin of 30%. At What price would Lisa receive a margin call?
A. $20
B. $22.86
C. $57.14
D. $80.00 - ANSWER B. $22.86
40*(1-.60)/ 1-.30= 22.86
Lareen purchased 1000 shares of CWC stock for $80 per share with an initial margin requirement of
65% and a maintenance margin of 40%. Assume the stock price falls to $30 per share, how much
equity must Laureen contribute?
A. $2/share
B. $8/share
C. $10/share
D. $12/share - ANSWER C. $10 per a share
Required Equity Actual Equity
Price: 30 Price: 30
Main. Margin *.40 Debt: (28)
Required Equity 12 Actual: $2
Debt = $80* (1-.65) = $28
Required - Actual = contribution amount 12-2=10
, MSFT declared a dividend payable to shareholders on the record date of Wed. May 15th. Which is
the last possible date an investor could purchase the stock and still receive the dividend?
A. purchased on May 13th
B. purchased on May 12th
C. purchased on May 11th
D. purchased on May 10th - ANSWER D. May 10th.
Ex dividend date would be Monday the 13th, and in order to receive the dividend the investor would
have to purchase prior to the ex-dividend date. Since the 13th is a Monday the last possible date an
investor could purchase the stock and still receive the dividend would be Friday the 10th.
If June 4 is the date of record, when must Joe purchase the stock in order to receive the dividend?
A. June 1
B. June 2
C. June 3
D. June 4
E. May 31 - ANSWER A. June 1st
Date of record minus 3 days. When purchasing a stock you have to buy before the ex dividend date
to receive the dividend.
You are interviewing James Smith, CFP to manage your investments and provide financial guidance in
other areas of your life. James states that his investment philosophy is as a contrarian; he buys
securities that are losing favor and sells securities that are gaining favor. You review his previous track
record, which is about equal with the market. His investments are typically in a security that has lost
at least 10% for its most recent high. What type of bias is James exhibiting?
A. Anchoring
B. Herding
C. Overconfidence
