CRPC Exam- Prep & Study Guide | 330 Questions with Verified Answers| 100% Correct | Already Graded A+ | Latest 2026/2027 Update.

CRPC Exam- Prep & Study Guide | 330
Questions with Verified Answers| 100% Correct |
Already Graded A+ | Latest 2026/2027 Update.


Question:

Asset allocation? i,-




Answer:
- the apportioning of available funds among a number of asset classes in
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a way that meets the needs of a particular client, dampens the effects of
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periodic market fluctuations, and meets investment goals
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Question:
Four steps in the asset allocation process?
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Answer:
1) select asset classes to be represented
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2) determine the percentage that each asset class should represent in the
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total portfolio
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3) Select individual securities
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4) Review and rebalance
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,Question:
Strategic Asset Allocation?
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Answer:

- determine asset mix that provides optimal balance of expected risk and
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ROR i,-




- asset classes selected and % weight determined
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- Used to develop long-term allocation policy
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- utilizes rebalancing to maintain targeted weight
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Question:
Tactical Asset Allocation?
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Answer:

- used to develop short term strategies to exploit changes in market
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conditions i,-




- ofter viewed as a contrarian strategy
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- periodic revisions of asset mix; moving funds from over valued
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investments to undervalued investments i,- i,- i,- i,-




- market timing strategy
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Question:

Core-Satellite asset allocation? i,- i,-




Answer:

,70-80% invested in broad index fund or etfs
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- remaining satellite consists of actively managed MF's in niches such as
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sector funds or alt investments like hedge funds
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Question:

Contrarian Strategy? i,-




Answer:




Question:
Dollar-Cost averaging? i,-




Answer:

- investing regular amounts at regular intervals
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- reduce market timing risk, improve cost per share
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Question:

Low P/E strategy?
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Answer:

Ratio of 1= fair value
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Ratio > 1= overvalued
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, Ratio < 1= undervalued
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** The long-term average P/E for stocks is 16
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Question:

Bond Investment strategies (2)?
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Answer:

1) Ladder: Owning equal amounts of bonds along with maturities of equal
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intervals; ex. 50k of bonds with 10k each in 2,4,6,8,10 year maturities
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2) Barbell: Owning short-term and long-term bonds, each with a ladder;
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ex. 100k of bonds with 10k each in 1,2,3,4,5 year maturities and in
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16,17,18,19,20 year maturities i,- i,-




Question:

Systematic Risk? i,-




Answer:

P-purchasing power risk i,- i,-




R- reinvestment risk
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I- interest rate risk
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M- market risk
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E- exchange rate risk
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