CFP Exam Questions With 100% Correct Answers
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
D. Believe Perserverance - ANSWER-A. Anchoring
He is subject to anchoring. His belief is a stock that falls 10% for its high is likely to
return to that high. He is fixated on that high price.
Kevin has subscribed to various investment magazines and data resources, which he
religiously reads and analyzes. Kevin utilizes this analysis to make shifts in his high beta
portfolio on a daily basis. Which behavioral finance bias is Kevin subject to?
A. Hindsight Bias
B. Overconfidence
C. Regret Avoidance
D. Herd Mentality - ANSWER-B. Overconfidence
This is a classic example of overconfidence. Kevin believes that his information is
perfect, that his analysis is perfect, so he trades too often and has a very risky portfolio
(high beta).
Which of the following would you use to ascertain the chairman's perspective for
progress completed and expected for the coming year?
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
D. Believe Perserverance - ANSWER-A. Anchoring
He is subject to anchoring. His belief is a stock that falls 10% for its high is likely to
return to that high. He is fixated on that high price.
Kevin has subscribed to various investment magazines and data resources, which he
religiously reads and analyzes. Kevin utilizes this analysis to make shifts in his high beta
portfolio on a daily basis. Which behavioral finance bias is Kevin subject to?
A. Hindsight Bias
B. Overconfidence
C. Regret Avoidance
D. Herd Mentality - ANSWER-B. Overconfidence
This is a classic example of overconfidence. Kevin believes that his information is
perfect, that his analysis is perfect, so he trades too often and has a very risky portfolio
(high beta).
Which of the following would you use to ascertain the chairman's perspective for
progress completed and expected for the coming year?
