CRPC EXAM 2 NEWEST ACTUAL EXAM COMPLETE 200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED + || BRAND NEW!!|

CRPC EXAM 2 NEWEST ACTUAL EXAM COMPLETE 200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED + || BRAND NEW!!| The process of rebalancing is a key factor inANSWERStrategic asset allocation. Strategic asset allocation involves obtaining the best asset mix for a client over a long period. For example, this might be 60% stocks and 40% bonds. When these percentages change due to market movements, this strategic asset allocation requires the portfolio to be rebalanced back to the target mix, in this case 60/40 stocks/bonds. Which of the following are correct statements about the capital utilization strategy? ANSWERI. It produces an annual retirement income over a finite number of years. II. Assuming the yield remains the same, the larger the retirement income that is paid, the shorter the number of years over which it will be paid. III. When the capital utilization approach is used, the planner must be careful in making assumptions about the life expectancy of the client. IV. The effect of taxes on retirement savings and distributions should be considered when the before-tax approach is used to calculate the future value of retirement assets. Which one of the following is not a key element of an investment policy? ANSWERA) a provision for periodic review B) the acceptable risk tolerance level C) a target asset allocation D) names of specific stocks to be in the portfolio --D