CFP EXAM QUESTIONS AND ANSWERS
Lisa ypurchased y500 yshares yof yXYZ ystock ytrading yat y$40 yper yshare, ywith yan
yinitial ymargin yrequirement yof y60% yand ya ymaintenance ymargin yof y30%. yAt yWhat
yprice ywould yLisa yreceive ya ymargin ycall?
A. y$20
B. y$22.86
C. y$57.14
D. y$80.00 y- ycorrect yanswers y-B. y$22.86
40*(1-.60)/ y1-.30= y22.86
Lareen ypurchased y1000 yshares yof yCWC ystock yfor y$80 yper yshare ywith yan yinitial
ymargin yrequirement yof y65% yand ya ymaintenance ymargin yof y40%. yAssume ythe
ystock yprice yfalls yto y$30 yper yshare, yhow ymuch yequity ymust yLaureen ycontribute?
A. y$2/share
B. y$8/share
C. y$10/share
, D. y$12/share y- ycorrect yanswers y-C. y$10 yper ya yshare
Required yEquity yActual yEquity
Price: y30 yPrice: y30
Main. yMargin y*.40 yDebt: y(28)
Required yEquity y12 yActual: y$2
Debt y= y$80* y(1-.65) y= y$28
Required y- yActual y= ycontribution yamount y12-2=10
MSFT ydeclared ya ydividend ypayable yto yshareholders yon ythe yrecord ydate yof yWed.
yMay y15th. yWhich yis ythe ylast ypossible ydate yan yinvestor ycould ypurchase ythe ystock
yand ystill yreceive ythe ydividend?
A. ypurchased yon yMay y13th
B. ypurchased yon yMay y12th
C. ypurchased yon yMay y11th y
D. ypurchased yon yMay y10th y- ycorrect yanswers y-D. yMay y10th. y
Ex ydividend ydate ywould ybe yMonday ythe y13th, yand yin yorder yto yreceive ythe
ydividend ythe yinvestor ywould yhave yto ypurchase yprior yto ythe yex-dividend ydate.
ySince ythe y13th yis ya yMonday ythe ylast ypossible ydate yan yinvestor ycould ypurchase
ythe ystock yand ystill yreceive ythe ydividend ywould ybe yFriday ythe y10th.
If yJune y4 yis ythe ydate yof yrecord, ywhen ymust yJoe ypurchase ythe ystock yin yorder yto
yreceive ythe ydividend?
A. yJune y1
B. yJune y2
C. yJune y3
D. yJune y4 y
E. yMay y31 y- ycorrect yanswers y-A. yJune y1st y
Date yof yrecord yminus y3 ydays. yWhen ypurchasing ya ystock yyou yhave yto ybuy
ybefore ythe yex ydividend ydate yto yreceive ythe ydividend.
You yare yinterviewing yJames ySmith, yCFP yto ymanage yyour yinvestments yand
yprovide yfinancial yguidance yin yother yareas yof yyour ylife. yJames ystates ythat yhis
yinvestment yphilosophy yis yas ya ycontrarian; yhe ybuys ysecurities ythat yare ylosing
yfavor yand ysells ysecurities ythat yare ygaining yfavor. yYou yreview yhis yprevious ytrack
yrecord, ywhich yis yabout yequal ywith ythe ymarket. yHis yinvestments yare ytypically yin ya
ysecurity ythat yhas ylost yat yleast y10% yfor yits ymost yrecent yhigh. yWhat ytype yof ybias
yis yJames yexhibiting?
Lisa ypurchased y500 yshares yof yXYZ ystock ytrading yat y$40 yper yshare, ywith yan
yinitial ymargin yrequirement yof y60% yand ya ymaintenance ymargin yof y30%. yAt yWhat
yprice ywould yLisa yreceive ya ymargin ycall?
A. y$20
B. y$22.86
C. y$57.14
D. y$80.00 y- ycorrect yanswers y-B. y$22.86
40*(1-.60)/ y1-.30= y22.86
Lareen ypurchased y1000 yshares yof yCWC ystock yfor y$80 yper yshare ywith yan yinitial
ymargin yrequirement yof y65% yand ya ymaintenance ymargin yof y40%. yAssume ythe
ystock yprice yfalls yto y$30 yper yshare, yhow ymuch yequity ymust yLaureen ycontribute?
A. y$2/share
B. y$8/share
C. y$10/share
, D. y$12/share y- ycorrect yanswers y-C. y$10 yper ya yshare
Required yEquity yActual yEquity
Price: y30 yPrice: y30
Main. yMargin y*.40 yDebt: y(28)
Required yEquity y12 yActual: y$2
Debt y= y$80* y(1-.65) y= y$28
Required y- yActual y= ycontribution yamount y12-2=10
MSFT ydeclared ya ydividend ypayable yto yshareholders yon ythe yrecord ydate yof yWed.
yMay y15th. yWhich yis ythe ylast ypossible ydate yan yinvestor ycould ypurchase ythe ystock
yand ystill yreceive ythe ydividend?
A. ypurchased yon yMay y13th
B. ypurchased yon yMay y12th
C. ypurchased yon yMay y11th y
D. ypurchased yon yMay y10th y- ycorrect yanswers y-D. yMay y10th. y
Ex ydividend ydate ywould ybe yMonday ythe y13th, yand yin yorder yto yreceive ythe
ydividend ythe yinvestor ywould yhave yto ypurchase yprior yto ythe yex-dividend ydate.
ySince ythe y13th yis ya yMonday ythe ylast ypossible ydate yan yinvestor ycould ypurchase
ythe ystock yand ystill yreceive ythe ydividend ywould ybe yFriday ythe y10th.
If yJune y4 yis ythe ydate yof yrecord, ywhen ymust yJoe ypurchase ythe ystock yin yorder yto
yreceive ythe ydividend?
A. yJune y1
B. yJune y2
C. yJune y3
D. yJune y4 y
E. yMay y31 y- ycorrect yanswers y-A. yJune y1st y
Date yof yrecord yminus y3 ydays. yWhen ypurchasing ya ystock yyou yhave yto ybuy
ybefore ythe yex ydividend ydate yto yreceive ythe ydividend.
You yare yinterviewing yJames ySmith, yCFP yto ymanage yyour yinvestments yand
yprovide yfinancial yguidance yin yother yareas yof yyour ylife. yJames ystates ythat yhis
yinvestment yphilosophy yis yas ya ycontrarian; yhe ybuys ysecurities ythat yare ylosing
yfavor yand ysells ysecurities ythat yare ygaining yfavor. yYou yreview yhis yprevious ytrack
yrecord, ywhich yis yabout yequal ywith ythe ymarket. yHis yinvestments yare ytypically yin ya
ysecurity ythat yhas ylost yat yleast y10% yfor yits ymost yrecent yhigh. yWhat ytype yof ybias
yis yJames yexhibiting?
