CTFA Cannon Study Guide Questions and
Verified Answers, 100% Score Guarantee
Pass (Latest 2025)
Most effective way to reduce risk in a portfolio - Correct
Answers ✅Diversification
Who benefits the most in a highly leveraged company during
periods of rising profits - Correct Answers ✅Common
Stockholders
What level are Treasury Securities taxed at? - Correct
Answers ✅Federal level ONLY. EXEMPT from State and Local
level.
What can Pooled Income Funds NOT invest in - Correct
Answers ✅Municipal Bonds
A widow, 75 years old, with no heirs wants stable income with
little risk should have a portfolio constructed mostly of what?
- Correct Answers ✅Bonds
What has provided the highest return over the past 50 years -
Correct Answers ✅Common Stock
Exhibit high PE Ratios, Low Dividend Yields, high price
volatility - Correct Answers ✅Growth Stocks
, CTFA Cannon Study Guide Questions and
Verified Answers, 100% Score Guarantee
Pass (Latest 2025)
Defensive stocks include - Correct Answers ✅Food,
beverage, toiletries
Who determines and declares a companies dividends -
Correct Answers ✅The companies Board of Directors
What pays a high yield compared to Treasury or Agency
Bonds? - Correct Answers ✅Corporate Bonds
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 _____________ - Correct
Answers ✅appreciating; lower
Possesses HIGH liquidity and HIGH marketability VERY low
risk investment option? - Correct Answers ✅Money-Market
Funds
What is a good inflation hedge in a portfolio - Correct
Answers ✅Gold and Real Estate
stock that entitles the holder to a fixed dividend, whose
dividend payment takes priority over that of common-stock
dividends. No voting rights. - Correct Answers ✅preferred
stock
Verified Answers, 100% Score Guarantee
Pass (Latest 2025)
Most effective way to reduce risk in a portfolio - Correct
Answers ✅Diversification
Who benefits the most in a highly leveraged company during
periods of rising profits - Correct Answers ✅Common
Stockholders
What level are Treasury Securities taxed at? - Correct
Answers ✅Federal level ONLY. EXEMPT from State and Local
level.
What can Pooled Income Funds NOT invest in - Correct
Answers ✅Municipal Bonds
A widow, 75 years old, with no heirs wants stable income with
little risk should have a portfolio constructed mostly of what?
- Correct Answers ✅Bonds
What has provided the highest return over the past 50 years -
Correct Answers ✅Common Stock
Exhibit high PE Ratios, Low Dividend Yields, high price
volatility - Correct Answers ✅Growth Stocks
, CTFA Cannon Study Guide Questions and
Verified Answers, 100% Score Guarantee
Pass (Latest 2025)
Defensive stocks include - Correct Answers ✅Food,
beverage, toiletries
Who determines and declares a companies dividends -
Correct Answers ✅The companies Board of Directors
What pays a high yield compared to Treasury or Agency
Bonds? - Correct Answers ✅Corporate Bonds
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 _____________ - Correct
Answers ✅appreciating; lower
Possesses HIGH liquidity and HIGH marketability VERY low
risk investment option? - Correct Answers ✅Money-Market
Funds
What is a good inflation hedge in a portfolio - Correct
Answers ✅Gold and Real Estate
stock that entitles the holder to a fixed dividend, whose
dividend payment takes priority over that of common-stock
dividends. No voting rights. - Correct Answers ✅preferred
stock
