age 1 of 103
CEBS RPA 1 & CEBS RPA 2 ACTUAL EXAM 2026
Sell-side analysts .......Answer.........They cover actively traded
stocks in the U.S. & provide research reports used to 'sell' an
idea to investors.
Buy-side analysts .......Answer.........Analysts employed by money
management firms such as pension funds, mutual funds, &
investment advisors.
Information sources used by analysts
.......Answer.........Presentations by top management, annual
reports, & Form 10-K reports filed with the SEC.
Annual reports .......Answer.........Reports that provide financial
statements & supporting details about a company.
,age 2 of 103
Form 10-K reports .......Answer.........Annual filing report with the
SEC for publicly traded companies containing more financial
information than the annual report to stockholders.
Rotation strategy .......Answer.........Involves an investor rotating
out of certain asset classes while rotating into other asset classes.
Momentum investing .......Answer.........Relates to
purchasing/selling stocks showing strong/weak recent price
performance.
Market timing .......Answer.........Attempting to earn excess returns
by varying the percentage of portfolio assets in equity
securities.
Market efficiency and rational asset pricing
.......Answer.........Security prices accurately reflect investor
expectations about future cash flows in a rational market.
,age 3 of 103
Yield .......Answer.........Periodic cash flows from an investment
(dividends, interest)
Capital gains and losses .......Answer.........Change in value of an
asset
Total return .......Answer.........(Yield + capital gain or
loss)/purchase price
Return relative .......Answer.........Adds 1.0 to "total return" to
avoid negative numbers in calculation of geometric mean
Cumulative wealth index .......Answer.........Measures aggregate
effect of returns over time
International returns .......Answer.........Returns from investments in
foreign markets
, age 4 of 103
Arithmetic mean .......Answer.........Used for typical performance
for a single period
Geometric mean .......Answer.........Measures compound growth
over time for multiple periods
Inflation-adjusted returns .......Answer.........[(1 + real return) / (1
+ inflation rate)] - 1
Interest rate risk .......Answer.........Variability due to changes in
interest rates
Market risk .......Answer.........Variability due to market
fluctuations
Inflation risk .......Answer.........Risk that purchasing power of an
invested dollar will decline
Business risk .......Answer.........Industry-specific risks
CEBS RPA 1 & CEBS RPA 2 ACTUAL EXAM 2026
Sell-side analysts .......Answer.........They cover actively traded
stocks in the U.S. & provide research reports used to 'sell' an
idea to investors.
Buy-side analysts .......Answer.........Analysts employed by money
management firms such as pension funds, mutual funds, &
investment advisors.
Information sources used by analysts
.......Answer.........Presentations by top management, annual
reports, & Form 10-K reports filed with the SEC.
Annual reports .......Answer.........Reports that provide financial
statements & supporting details about a company.
,age 2 of 103
Form 10-K reports .......Answer.........Annual filing report with the
SEC for publicly traded companies containing more financial
information than the annual report to stockholders.
Rotation strategy .......Answer.........Involves an investor rotating
out of certain asset classes while rotating into other asset classes.
Momentum investing .......Answer.........Relates to
purchasing/selling stocks showing strong/weak recent price
performance.
Market timing .......Answer.........Attempting to earn excess returns
by varying the percentage of portfolio assets in equity
securities.
Market efficiency and rational asset pricing
.......Answer.........Security prices accurately reflect investor
expectations about future cash flows in a rational market.
,age 3 of 103
Yield .......Answer.........Periodic cash flows from an investment
(dividends, interest)
Capital gains and losses .......Answer.........Change in value of an
asset
Total return .......Answer.........(Yield + capital gain or
loss)/purchase price
Return relative .......Answer.........Adds 1.0 to "total return" to
avoid negative numbers in calculation of geometric mean
Cumulative wealth index .......Answer.........Measures aggregate
effect of returns over time
International returns .......Answer.........Returns from investments in
foreign markets
, age 4 of 103
Arithmetic mean .......Answer.........Used for typical performance
for a single period
Geometric mean .......Answer.........Measures compound growth
over time for multiple periods
Inflation-adjusted returns .......Answer.........[(1 + real return) / (1
+ inflation rate)] - 1
Interest rate risk .......Answer.........Variability due to changes in
interest rates
Market risk .......Answer.........Variability due to market
fluctuations
Inflation risk .......Answer.........Risk that purchasing power of an
invested dollar will decline
Business risk .......Answer.........Industry-specific risks
