CRPC

A direct rollover is a transaction in which benefits from a qualified plan are rolled over directly to: A) a conduit IRA. B) a participant's checking or savings account. C) another eligible retirement plan. D) the individual with a check in their name. Ans Answer: C A direct rollover may be accomplished by any reasonable means of direct payment to an eligible retirement plan, including a wire transfer or mailing of a check negotiable only by the plan's trustee. Using a conduit IRA is ...

3 ways bonds are measured. Ans 1. Current yield- Bonds annual interest dividend by its current price 2. YTM- yield to maturity 3. YTC- yield to call 4 Major asset classes to make up an investment portfolio Ans 1. Cash equivalents 2. Stock 3. Fixed income 4. Cash 5. Real Estate A bond has a duration of eight years. If market interest rates rise by 1%, the percentage price change of the bond is approximately Ans an 8% decline : % Change in Price= -8% X 1%= -8% Beta Ans Measures ...

An investor has a 6%, $10,000 par value bond that matures in 15 years. The yield to maturity on similar bonds currently is 5.5%. What is the price of this bond? a. $1,050.62 b. $5,779.16 c. $9,509.99 d. $10, 506.23 Ans d. $10, 506.23 Assuming the market is currently returning 12% and the beta of your stock is .8. What percentage return can you expect on your stock? a. 2.4%

A major responsibility of FINRA is Ans Developing rules and regulations for its members. A potential client, Ross, is contacted by Amy, an investment professional with a fiduciary responsibility to her clients. Ross is interested in trading complex options and is willing to open an account if Amy is knowledgeable about options. Amy implies to Ross that she is an expert in option trading but, in fact, knows only the basic elements of it. Looking solely at Amy's lack of competency in this ar...

__________ is a coherent set of guidelines for managing financial assets according to the client's goals and the realities of the investment market. Ans Investment policy The investment policy statement is a blueprint for the financial management process that is aligned with the goals of the client but also in line with market reality. A bond has a duration of eight years. If market interest rates rise by 1%, the percentage price change of the bond is approximately: Ans An 8% decline. ...

2-1 At a minimum, what five elements should every investment policy contain? Briefly explain or provide examples. GRASP Ans G-R-A-S-P Goals: A clear statement of the client's investment goals. Goals can be stated in relative terms (e.g., stock returns equal to the market as a whole, as measured against the S&P 500 index). Risk: A statement of the risk level acceptable to the client, as well as how risk will be managed or controlled (through diversification, rotation from long-term to ...

CRPC Practice Exam 2 Questions with verified answers.

CRPC Damage Control Mod: 4, 5, 6 Questions with Ans

CRPC Practice Exam 1 Questions with verified answer1

CRPC Questions with verified answers.